Jesse Pinkman is a merchandiser of calculators, and began his operations on April 1. The company expects sales in the first month of operations to be $20,000, all of which are cash sales. Inventory purchases during April are projected to be $6,000. Purchases are paid for in the month following the month of purchase. No purchase discounts are available. The company's expected operating expenses are as follows:

Salaries and Wages (paid on the last day of each month)	$3,000 per month
Lease Expense (paid on the 15th day of each month)	$1,250 per month
Utilities Expense (paid on the 1st day of the following month)	$650 per month
Depreciation Expense	$350 per month

Jesse Pinkman plans to take out a business loan with a local bank at the beginning of April. The entire amount borrowed will be immediately reinvested in the business to purchase assets and inventory. Interest will not begin to accrue until May, but a principal payment of $3,000 is required to be paid by the end of April. Additionally, Jesse Pinkman plans to pay a cash dividend of $5,000 to shareholders in April.

Jesse Pinkman is required to maintain a minimum cash balance of $8,000 at the end of each month by the bank. Which of the following statements is incorrect?

Question 10 options:

	Jesse Pinkman could pay up to $4,750 in cash dividends to shareholders without arriving at a bank balance below the indicated amount needed.
	Jesse Pinkman needs to budget for a payment to suppliers for inventory purchases in the first month of operations.
	Cash operating expenses for Jesse Pinkman in April were $4,250.
	The expected cash balance at the end of April is $7,750.
	Jesse Pinkman should anticipate having to pull $250 from an established line of credit if it makes no changes to the above plan.