5. What is the firms loan requirement in May? *

3 points

a. ($84,200)

b. $84,200

c. $56,200

d. ($56,200)

e. None of the above

6. The firm has a deficit in cash in all months EXCEPT: *

3 points

a. June and July

b. July and August

c. April, June and August

d. April, July and August

e. None of the above

Birosta Co. is preparing its cash budget and its financial manager has forecasted sales revenues as shown below: Month April May June July August Sales $225,000 236,000 195,000 205,200 186,400 The company collects 40% of its sales immediately and 60% during the following month. Their payments for the time period April, May, June, July and August are divided as following: August 125,200 Payments are made in the same month of purchases as follow: Month April May June July Payments $100,600 120,800 102,900 110,400 Salaries expenses: $24,100 per month Rent expenses: $27,500 per month Capital expenditures: $85,000 in May only The beginning cash balance in April 2020 was $41,000. The minimum cash balance is $35,000 Birosta Co. is preparing its cash budget and its financial manager has forecasted sales revenues as shown below: Month April May June July August Sales $225,000 236,000 195,000 205,200 186,400 The company collects 40% of its sales immediately and 60% during the following month. Their payments for the time period April, May, June, July and August are divided as following: August 125,200 Payments are made in the same month of purchases as follow: Month April May June July Payments $100,600 120,800 102,900 110,400 Salaries expenses: $24,100 per month Rent expenses: $27,500 per month Capital expenditures: $85,000 in May only The beginning cash balance in April 2020 was $41,000. The minimum cash balance is $35,000