Reference no: EM132551173

Daniel is the manager of airport gift shop. From the following information Mr. Daniel wants a cash budget showing expected receipt and disbursement for the month of April, and the ending cash balance of April, 2007. Minimum cash balance should be $300,000

· Cash balance of March 31, 2007: $100,000

· Direct material paid cash $35,000.

· Direct labor paid cash $15,000.

· Accounts payable, $460,000

· Merchandising purchases for April: $450,000, 40% paid in month of purchase, 60% paid in the next month.

· Sales for April: $1000,000, half collected in the month of sale, 40% in the next month, 10% in the third month

· Depreciation for April $30,000

Question 1: So the ending cash balance for April, 2007 will be

Select one:

Option a. $370,000

Option b. $200,000

Option c. $220,000

Option d. $500,000