Kara Corporation has the following sales forecasts for the selected three-month period in 2011: Seventy percent of sales are collected in the month of the sale, and the remainder are collected in the following month.
Minimum cash balance is $10,000.Cash can be borrowed in $1,000 increments from the local bank (assume no interest charges).
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What is the cash balance at the end of July, assuming that cash is received only from customers and that $40,000 is paid out during April?
A) $20,000
B) $16,800
C) $6,800
D) $10,800

Question

Kara Corporation has the following sales forecasts for the selected three-month period in 2011:  Seventy percent of sales are collected in the month of the sale, and the remainder are collected in the following month.
 Minimum cash balance is $10,000.Cash can be borrowed in $1,000 increments from the local bank (assume no interest charges).
-
What is the cash balance at the end of July, assuming that cash is received only from customers and that $40,000 is paid out during April?
A) $20,000 
B) $16,800 
C) $6,800 
D) $10,800

Quizplus · Accepted Answer

The Answer of Kara Corporation has the following sales forecasts for the selected three-month period in 2011:  Seventy percent of sales are collected in the month of the sale, and the remainder are collected in the following month.
 Minimum cash balance is $10,000.Cash can be borrowed in $1,000 increments from the local bank (assume no interest charges).
-
What is the cash balance at the end of July, assuming that cash is received only from customers and that $40,000 is paid out during April?
A) $20,000 
B) $16,800 
C) $6,800 
D) $10,800

Kara Corporation Has the Following Sales Forecasts for the Selected