Lyon Corp.has provided a part of its budget for the second quarter: $$\begin{array} { | l | r | r | r | }
\hline &{ \text { Apr } } &{ \text { May } } & { \text { Jun } } \
\hline \text { Cash collections } & \$ 43,000 & \$ 45,000 & \$ 50,000 \
\hline \text { Cash payments: } & & & \
\hline \text { Purchases of direct materials } & 7200 & 5000 & 7000 \
\hline \text { Operating expenses } & 6000 & 7900 & 7000 \
\hline \text { Capital expenditures } & 4000 & 4600 & 20,000 \
\hline
\end{array}$$ The cash balance on April 1 is $12,000.Assume that there will be no financing transactions or costs during the quarter.Calculate the projected cash balance at the end of June.
A) $115,300
B) $37,800
C) $81,300
D) $65,300

Question

Lyon Corp.has provided a part of its budget for the second quarter: $$\begin{array} { | l | r | r | r | } 
\hline &{ \text { Apr } } &{ \text { May } } & { \text { Jun } } \
\hline \text { Cash collections } & \$ 43,000 & \$ 45,000 & \$ 50,000 \
\hline \text { Cash payments: } & & & \
\hline \text { Purchases of direct materials } & 7200 & 5000 & 7000 \
\hline \text { Operating expenses } & 6000 & 7900 & 7000 \
\hline \text { Capital expenditures } & 4000 & 4600 & 20,000 \
\hline
\end{array}$$ The cash balance on April 1 is $12,000.Assume that there will be no financing transactions or costs during the quarter.Calculate the projected cash balance at the end of June.
A) $115,300
B) $37,800
C) $81,300
D) $65,300

Quizplus · Accepted Answer

The projected cash balance at the end of June is calculated by adding the initial cash balance and total cash collections, then subtracting total cash payments. Starting with $12,000, add total collections ($43,000 + $45,000 + $50,000 = $138,000) and subtract total payments ($7,200 + $5,000 + $7,000 + $6,000 + $7,900 + $7,000 + $4,000 + $4,600 + $20,000 = $68,700). The ending balance is $12,000 + $138,000 - $68,700 = $81,300.

Lyon CorpHas Provided a Part of Its Budget for the Second