Suppose that James Inc. is preparing a cash budget for the period of June till September 2020. The company has the following data: Wages are expected to be 15% of the collections of the same month. Lease payments of $10,000 in each month Interest of $30,000 paid in each of June and September. Dividends of $50,000 paid in June Capital outlays of $120,000 in July. The minimum acceptable cash is $15,000 The ending cash balance in May 2020 was $20,000

1. Wages in august 2020 are expected to be *

a. $10,000

b. $96,000

c. $23,475

d. $45,600

e. None of the above

2. Total disbursements in June 2020 are expected to be: *

a. $319,665

b. $400,000

c. $240,000

d. $250,000

e. None of the above

3. The Beginning cash balance in July 2020 is expected to be: *

a. $20,000

b. $42,045

c. $40,990

d. $12,000

e. None of the above

4. The current borrowing in July 2020 is expected to be: *

a. $14,500

b. $91,400

c. $56,990

d. $70,017

e. None of the above

5. The ending cash balance, in August 2020 is expected to be: *

a. $15,000

b. $78,400

c. $86,700

d. $47,900

e. None of the above

6. The amount of total borrowing over the four months period is expected to be: *

a. $140,011

b. $150,850

c. $177,009

d. $153,177

e. None of the above

Total Collections Total inventory payments June 341,700 178,400 July 198,800 175,000 August September 156,500 191,800 139,400 79,600