As of December 31, Budget, Inc

question 64

Multiple Choice

As of December 31, Budget, Inc. had a cash balance of $50,000. December sales were $150,000 and are expected to be $100,000 in January. 20% of sales in any month are cash sales, and 80% of sales are collected during the following month. In January, Budget is expected to have total cash disbursements of $120,000, and Budget requires a minimum cash balance of $50,000. Budget's expected cash receipts for January are

• A) $80,000.
• B) $100,000.
• C) $110,000.
• D) $140,000.

Grasp the market equilibrium concept and the effect of supply and demand shifts on equilibrium.

Comprehend the income elasticity of demand and its impact on quantity demanded following an income change.

Recognize the difference between normal and inferior goods based on income elasticity values.

Understand elasticity of supply and its relevance in market dynamics.

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Definitions:

Days Inventory Held

The average number of days a company holds its inventory before selling it, reflecting inventory management efficiency.

Inventory

Inventory encompasses the goods and materials that a business holds for the ultimate goal of resale or processing.

Cost Of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including materials, labor, and overhead expenses.

Days Receivable Outstanding

Days Receivable Outstanding (DRO) is a financial metric that calculates the average number of days it takes a company to collect payment after a sale has been made.