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Use the following to answer questions 41-43: The Grainger Company's budgeted income statement reflects the following amounts:
*Of this balance, $35,000 will be collected in January and the remaining amount will be collected in February.
The monthly expense figures include $5,000 of depreciation. The expenses are paid in the month incurred.
41. Grainger's expected cash balance at the end of January is:
A. $87,000.
B. $89,160.
C. $92,000.
D. $94,160.
E. $113,160.
Answer: D
42. Grainger's budgeted cash receipts in February are:
A. $91,000.
B. $95,000.
C. $113,090.
D. $113,640.
E. $114,000.
Answer: E
43. Grainger's budgeted cash payments in February are:
A. $75,660.
B. $94,860.
C. $97,200.
D. $99,860.
E. $102,200.
Answer: B
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