La petite expects to earn net income

Reference no: EM131124864

La Petite France Bakery is budgeting cash for 20X8. The cash balance at December 31, 20X7, was $10,000. LaPetite budgets 20X8 cash receipts at $85,000. Estimated cash payments include $40,000 for inventory, $30,000 for operating expenses, and $20,000 to expand the store. La Petite needs a minimum cash balance of $10,000 at all times. La Petite expects to earn net income of $40,000 during 20X8. What is the final result of the company's cash budget for 20X8?

a. $10,000 available for additional investments.
b. $5,000 available for additional investments.
c. Must arrange new financing for $5,000.
d. Pay off $10,000 of debt.

Reference no: EM131124864

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