Texas State has a policy of minimum cash balance of $28,000. They started the year with $30,000 in Cash.
Texas State expects $400,000 in tuition to be collected in the first quarter. The beginning of the year always has
heavy spending. In the first quarter Texas State needs to pay professors $100,000; grounds maintenance teams
$40,000; and make the final construction payment of $300,000 for a new building. Texas State also had
depreciation expense of $100,000. How much do they need to borrow at the end of March?
a. $ 138,000
b. $ 38,000
c. $ 28,000
c. $ 0

McCoy sells Texas State T-shirts. In January they sold 1000 shirts for $30 each. In February they sold 500 shirts
for $30 each. Sales are all on account. McCoy typically collect 20% of account sales in the same month as sold,
and 80% in the following month. What is McCoy’s accounts receivable balance on February 28?
a. $36,000
b. $12,000
c. $15,000
d. $39,000

Answer rating: 100% (QA)

8 Texes have to borrow 138000 at the end of the March hence option is ... View the full answer