A Company Is Preparing Its Cash Budget for the First

Multiple Choice

A company is preparing its cash budget for the first quarter of the year.It has $8,000 in cash at the beginning of the period.Cash sales for the quarter are budgeted at $180,000.Selling and administrative expenses are budgeted at $58,000, which includes $12,000 depreciation.Cash expenses are paid in the month incurred.Cash payment for inventory purchases are budgeted at $135,000.The desired cash balance on March 31 is $10,000.How much financing will the company need during the quarter?

A) $0
B) $3,000
C) $5,000
D) $7,000