A) A venture pays 40% of its purchases in the current month purchases and the re

Question

A) A venture pays 40% of its purchases in the current month purchases and the remainder 60% in the following month. If the purchases for the month of August are $10M and for the month September are $15M.

Find the disbursement for purchases for the month of September.

$25M; $10M; $12M; $14M; or $8M

B) A venture has a beginning cash balance of $40,000. The total cash available for needs before financing for June is $400,000 and it includes the beginning cash and cash receipts form collections of accounts receivable. It needs for disbursements a total of $500,000 for the month of June including a minimum desired cash balance of $40,000. If there is any deficit in cash, then it finances it via a bank loan or line of credit.

Find the ending cash balance for the month of June.

$0; $40,000; $60,000; $20,000; or $35,000

***Thank you***

Explanation / Answer

a. $12M

b. $60,000

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