Webster Corporation is preparing its cash budget for April. The cash balance as of March 31 is $36,400. Cash receipts are expected to be $641,000 and cash payments for purchases are expected to be $608,500. Other expected cash expenses are $27,000 selling and $33,500 general and administrative. The company wants a minimum cash balance at the end of each month of $30,000. If necessary, the company borrows enough cash to meet the minimum through a short-term note. Webster's preliminary cash balance before lending activity for April is expected to be:

Cahuilla Corporation forecasts the following unit sales for the next four months:

	April	May	June	July
Sales in Units	240	280	300	240

Ending inventory of finished goods each month should be 40% of the next month's sales. Finished goods inventory as of March 31 is 96 units. A completed unit requires 5 pounds of direct material B. The March 31 raw material inventory has 200 pounds of B. Each month's ending raw material inventory should be 30% of the following month's production needs. The budgeted purchases of pounds of direct material B during the month of May should be:

Southland Company is preparing a cash budget for August. The company has $17,000 in cash at the beginning of August and anticipates $120,800 in cash inflows and $134,500 in cash outlays during August. Southland Company wants to maintain a minimum cash balance of $10,000. 

What is the preliminary cash balance at the end of August before any lending activity?

Answer rating: 100% (QA)

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