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Below is budget information for next year for NGG Inc. Quarter 1 Quarter 2 Quarter 3 Quarter 4 Cash inflows - revenues $60,000 $75,000 $70,000
Below is budget information for next year for NGG Inc.
Quarter 1 | Quarter 2 | Quarter 3 | Quarter 4 | |
Cash inflows - revenues | $60,000 | $75,000 | $70,000 | $80,000 |
Cash outflows - dir matls, dir lab | $25,000 | $30,000 | $27,500 | $35,000 |
Fixed OH expenses | $8,000 | $8,000 | $8,000 | $8,000 |
Distributions to owners | $5,000 | $5,000 | $5,000 | $5,000 |
Equipment purchases (long term) | $0 | $2,500 | $0 | $0 |
No variable overhead is incurred or budgeted. The expected cash balance at the end of the current year is $3,500. Disbursements other than for direct materials and direct labor are expected to occur in the quarter incurred. Fixed overhead expenses include $1,000 for depreciation. What is the budgeted excess or (deficiency) in cash flows at the end of the first quarter?
Group of answer choices
$25,500
$23,000
None of the other answer choices are correct.
$22,000
$26,500
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