Bantam Industries Has Budgeted the Following Information for March If There Is a Cash Shortage,the Company Borrows Money from

question 43

Multiple Choice

Bantam Industries has budgeted the following information for March: $$\begin{array} { l r } \text { Cash receipts } & \$ 271,000 \\\text { Beginning cash balance } & 5,000 \\\text { Cash payments } & 280,000 \\\text { Desired ending cash balance } & 25,000\end{array}$$ If there is a cash shortage,the company borrows money from the bank.All cash is borrowed at the beginning of the month in $1,000 increments,and interest is paid monthly at 1% on the first day of the following month.The company had no debt before March 1.How much cash will the company need to borrow in March?

• A) $25,000
• B) $29,000
• C) The company should not need to borrow any cash in March
• D) $4,000

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Definitions:

Venn Diagram

A diagram that uses circles to represent the relationships among various sets or groups of objects.

Syllogism Validity

A measure of whether a deductive argument is logically sound, where the conclusion necessarily follows from the premises.

Venn Diagram

A visual diagram that illustrates the logical relationships among several distinct groups within a limited set.

Syllogism Validity

A measure of whether a syllogism (a form of deductive reasoning consisting of a major premise, a minor premise, and a conclusion) logically follows from its premises.