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Louise, Inc. has a cash balance of $22,000 on April 1. The company is now preparing the cash budget for the second quarter. Budgeted cash
Louise, Inc. has a cash balance of $22,000 on April 1. The company is now preparing the cash budget for the second quarter. Budgeted cash collections and payments are as follows:
Apr | May | Jun | ||
Cash collections | $25,000 | $24,000 | $20,000 | |
Cash payments: | ||||
Purchases of direct materials | 4,600 | 5,000 | 4,000 | |
Operating expenses | 5,000 | 5,000 | 4,600 |
There are no budgeted capital expenditures or financing transactions during the quarter. Based on the above data, calculate the projected cash balance at the end of May.
A.$56,400
B.$24,000
C.$61,400
D.$51,400
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