Hilliard Company Budgeted the Following Transactions for April Year 2

question 30

Multiple Choice

Hilliard Company budgeted the following transactions for April Year 2: $$\begin{array} {| l | r | } \hline \text { Sales (75\% collected in month of sale) } & \$ 200,000 \\\hline \text { Cash Operating Expenses } & 105,000 \\\hline \text { Cash Purchases of Investments } & 75,000 \\\hline \text { Cash Payment of Debt } & 15,000 \\\hline \text { Depreciation on Operating Assets } & 12,000 \\\hline\end{array}$$ The beginning cash balance was $50,000. The company desires to have a $25,000 ending cash balance. The surplus (or shortage) of cash before considering any financing activities (that is, borrowings or repayments) during in April would be:

• A) $40,000 surplus.
• B) $40,000 shortage.
• C) $20,000 shortage.
• D) There is no cash surplus or shortage.

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Definitions:

Desirable Behaviour

Refers to actions or conduct by individuals that are positively reinforced by an organization, typically aligning with its values and contributing to a positive work environment.

Development Strategy

A long-term plan for the growth or progress of a company, country, or individual.

Digital Delivery Method

A system or process that allows for the distribution of products, services, or information via digital channels, such as the internet or mobile apps.

Asynchronous

Communication or processes that do not occur in real-time, allowing participants to engage at their own convenience.