Beefing Inc's CFO is creating its cash budget for this month. Each month, the company manufactures and sells $30,000 of products, and it pays $23,000 for administrative expenses, variable and other operating costs. The firm has nothing in its checking account even though its target cash balance is $8,000. What amount will the CFO note on this month's "bottom line" of its cash budget? That is, what will be the company's cash position? (represent your numeric result with no decimal places)

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Beefing Inc's CFO is creating its cash budget for this month. Each month, the company manufactures and sells
$30,000 of products, and it pays $23,000 for administrative expenses, variable and other operating costs. The
firm has nothing in its checking account even though its target cash balance is $8,000. What amount will the
CFO note on this month's “bottom line" of its cash budget? That is, what will be the company's cash position?
(represent your numeric result with no decimal places)
Transcribed Image Text:Beefing Inc's CFO is creating its cash budget for this month. Each month, the company manufactures and sells $30,000 of products, and it pays $23,000 for administrative expenses, variable and other operating costs. The firm has nothing in its checking account even though its target cash balance is $8,000. What amount will the CFO note on this month's “bottom line" of its cash budget? That is, what will be the company's cash position? (represent your numeric result with no decimal places)
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