Cheyenne Company Has Budgeted the Following Information for June If There Is a Cash Shortage,the Company Borrows Money from

question 71

Multiple Choice

Cheyenne Company has budgeted the following information for June: $$\begin{array} { l r } \text { Cash receipts } & \$ 271,000 \\\text { Begnning cash balance } & 5,000 \\\text { Cash payments } & 280,000 \\\text { Desired ending cash balance } & 25,000\end{array}$$ 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 June 1.The amount of interest paid on July 1 would be:

• A) $250.
• B) $400.
• C) $221.
• D) $290.

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Definitions:

Conflicts of Interest

Situations where an individual's or entity's vested interests may potentially interfere with their ability to make impartial decisions, often leading to ethical dilemmas in various professions and fields.

Business Relationships

The interactions and engagements between a business and its stakeholders, including customers, suppliers, employees, and partners.

Accounting Loopholes

Specific provisions or gaps in financial regulation that can be legally exploited to avoid or reduce tax liabilities.

Massage Numbers

Informal and potentially unethical practices of manipulating financial data to present more favorable results than the actual performance.