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Jackson Corp. has provided a part of its budget for the 2nd quarter: Apr May Jun

ID: 2456867 • Letter: J

Question

Jackson Corp. has provided a part of its budget for the 2nd quarter:

Apr

May

June

Cash collections

$40,000

$45,000

$52,000

Cash payments:

Purchases of inventory

4,500

7,200

4,500

Operating expenses

7,900

5,600

9,000

Capital expenditures

0

20,000

4,600

The cash balance on April 1 is $12,000. Assume that there will be no financing transactions or costs during the quarter. Calculate the cash balance at the end of April.

A) $50,000

B) $40,200

C) $39,600

D) $51,800

Apr

May

June

Cash collections

$40,000

$45,000

$52,000

Cash payments:

Purchases of inventory

4,500

7,200

4,500

Operating expenses

7,900

5,600

9,000

Capital expenditures

0

20,000

4,600

Explanation / Answer

Jackson Corp. has provided a part of its budget for the 2nd quarter: Apr May Jun