Duffy Corp The Cash Balance on April 1 Is $14,000

Duffy Corp.has provided a part of its budget for the second quarter: $$\begin{array} { | l | r | r | r | } \hline & { \text { Apr } } &{ \text { May } } &{ \text { Jun } } \\\hline \text { Cash collections } & \$ 40,000 & \$ 40,000 & \$ 52,000 \\\hline \text { Cash payments: } & & & \\\hline \text { Purchases of direct materials } & 4500 & 5000 & 7000 \\\hline \text { Operating expenses } & 7200 & 7000 & 4500 \\\hline \text { Capital expenditures } & 5000 & 0 & 10,000 \\\hline\end{array}$$ The cash balance on April 1 is $14,000.Assume that there will be no financing transactions or costs during the quarter.Calculate the projected cash balance at the end of April.

A) $95,800
B) $54,000
C) $37,300
D) $65,300

Correct Answer:

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