PLEASE, PROVIDE THE SOLUTION. THANK YOU! Tortilla Corp. has provided a part of i
ID: 2449861 • Letter: P
Question
PLEASE, PROVIDE THE SOLUTION. THANK YOU!
Tortilla Corp. has provided a part of its budget for the second quarter:
Apr
May
Jun
Cash collections
$43,000
$40,000
$52,000
Cash payments:
Purchases of direct materials
5,000
4,500
$7,200
Operating expenses
7,200
5,600
Capital expenditures
5,000
20,000
00
The cash balance on April 1 is$13,000.
Assume that there will be no financing transactions or costs during the quarter. Calculate the projected cash balance at the end of May.
A.$56,000
Your answer is not correct.
B.$30,100
C.$78,800
D.$48,700
Apr
May
Jun
Cash collections
$43,000
$40,000
$52,000
Cash payments:
Purchases of direct materials
5,000
4,500
$7,200
Operating expenses
7,200
5,600
Capital expenditures
5,000
20,000
00
Explanation / Answer
D. $48700
Computation of projected cash balance at the end of may
Particulars April May
openin balance 13000 38800
add: cash collections 43000 40000
less: Purchase of direct materials (5000) (4500)
operating expenses (7200) (5600)
capital expenditure (5000) (20000)
Closing balance 38800 48700.
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