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Use the following information to determine the ending cash balance to be reported on the month ended June 30 cash budget.
A. Beginning cash balance on June 1, $94,000.
B. Cash receipts from sales, $413,000.
C. Budgeted cash disbursements for purchases, $268,000.
D. Budgeted cash disbursements for salaries, $95,000.
E. Other budgeted expenses, $57,000.
F. Cash repayment of bank loan, $32,000.
G. Budgeted depreciation expense, $34,000.
Economies of Scale
Cost advantages that enterprises obtain due to their scale of operation, typically characterized by a reduction in average cost per unit when production is increased.
Externalities
Costs or benefits that result from an economic activity and affect third parties who did not choose to incur that cost or benefit.
Diseconomies of Scale
The phenomenon where, as a firm scales up its production, the per unit cost starts to increase, typically due to inefficiencies.
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