A firm has an average collection period of 45 days and an operating cycle of 130 days. It has a policy of keeping at least $10 on hand as a minimum cash balance and has a beginning cash balance for the first quarter of $20. Beginning receivables for the quarter amount to $35. Sales for the first and second quarters are expected to be $120 and $135, respectively, while purchases amount to 80% of the next quarter's forecasted sales. The accounts payable period is 90 days. What is the ending cash balance for the first quarter?

Select one:

a.

$19

b.

$12

c.

$32

d.

$22

e.

$28

Clear my choice