Creative Cakes Bakery is budgeting cash for 2015. The cash balance at December 31, 2014,...
90.2K
Verified Solution
Link Copied!
Question
Accounting
Creative Cakes Bakery is budgeting cash for 2015. The cash balance at December 31, 2014, was $14,000. Creative Cakes Bakery budgets 2015 cash receipts at $83,000. Estimated cash payments include $42,000 for inventory, $32,000 for operating expenses, and $19,000 to expand the store. Creative Cakes Bakery needs a minimum cash balance of $13,000 at all times. Creative Cakes Bakery expects to earn net income of $78,000 during 2015. What is the final result of the company's cash budget for 2015? O A. $9,000 available for additional investments. B. Must arrange new financing for $9,000 O C. Pay off $18,000 of debt. OD. $18,000 available for additional investments
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
