A company is preparing its cash budget for the first quarter of the year.It has $1,000 in cash at the beginning of the period.Cash sales for the quarter are budgeted at $30,000.Selling and administrative expenses are budgeted at $8,000, which includes $2,000 depreciation.Cash expenses are paid in the month incurred.Cash payment for inventory purchases are budgeted at $25,000.The desired cash balance on March 31 is $5,000.How much financing will the company need during the quarter?
A)$0
B)$2,000
C)$5,000
D)$7,000

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The Answer of A company is preparing its cash budget for the first quarter of the year.It has $1,000 in cash at the beginning of the period.Cash sales for the quarter are budgeted at $30,000.Selling and administrative expenses are budgeted at $8,000, which includes $2,000 depreciation.Cash expenses are paid in the month incurred.Cash payment for inventory purchases are budgeted at $25,000.The desired cash balance on March 31 is $5,000.How much financing will the company need during the quarter?
A)$0
B)$2,000
C)$5,000
D)$7,000

A Company Is Preparing Its Cash Budget for the First