In a cash budget, the cumulative cash balance is equal to

Multiple Choice

• net cash flow minus the beginning cash balance.

• net cash flow plus the beginning cash balance.

• the cumulative loan balance minus the ending cash balance.

• the cumulative loan balance plus the ending cash balance.

BHS Inc. determines that sales will rise from $400,000 to $550,000 next year. Spontaneous assets are 60% of sales, and spontaneous liabilities are 30% of sales. BHS has an 8% profit margin and a 40% dividend payout ratio. What is the level of required new funds?

Multiple Choice

• $18,600

• $138,600

• $3,600

• No new funds are needed

If a firm has fixed costs of $24,000, a price of $8.00, and a breakeven point of 12,000 units, the variable cost per unit is:

Multiple Choice

• $7.00

• $6.00

• $4.50

• $8.00