Biology Forums - Study Force

Pavone Corp. has prepared a preliminary cash budget for the third quarter as shown below:

Cash Budget   Jul   Aug   Sep
Beginning cash balance   $36,000   $11,400   $16,900
Plus: Cash collections   $49,400   $53,000   44,800
Cash available   85,400   $64,400   $61,700
Less: Cash payments:         
Purchases of direct materials   35,000   9,000   11,000
Operating expenses   39,000   30,500   30,700
Capital expenditures   0   8,000   7,000
Ending cash balance   $11,400   $16,900   $13,000

Subsequently, the marketing department revised its figures for cash collections. New data are as follows: $57,000 in July, $56,000 in August, and $44,000 in September. Based on the new data, calculate the new projected cash balance at the end of September.
A) $27,500
B) $22,800
C) $13,000
D) $19,000

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Will mark this subject solved, thanks