Hilliard Company budgeted the following transactions for April 2014:
Sales (75% collected in month of sale).......................................$200,000
Cash opening expenses.........................................................$150,000
Cash purchases of investments....................................................75,000
Cash payment of Debt.............................................................15,000
Depreciation on operating Assets................................................12,000
The beginning cash balance was $50,000. The company desires to have a $25,000 ending cash balance. What is the amount of the cash surplus or shortage?
$40,000 shortage
There is no surplus or shortage.
$20,000 shortage
$40,000 surplus