Tokyo Corp Subsequently,the Marketing Department Revised Its Figures for Cash Collections

Tokyo Corp.has prepared a preliminary cash budget for the third quarter as shown below: $$\begin{array} { | l | r | r | r | } \hline \text { Cash Budget } &{ \text { Jul } } &{ \text { Aug } } &{ \text { Sep } } \\\hline \text { Beginning cash balance } & \$ 36,000 & \$ 11,000 & \$ 17,000 \\\hline \text { Plus: Cash collections } & \$ 51,000 & \$ 52,000 & \underline { 47,400 } \\\hline \text { Cash available } & 87,000 & \$ 63,000 & \$ 64,400 \\\hline \text { Less: Cash payments: } & & & \\\hline \text { Purchases of direct materials } & 34,000 & 8,000 & 10,000 \\\hline \text { Operating expenses } & 41,000 & 30,000 & 30,800 \\\hline \text { Capital expenditures } & \underline { 1,000 } & \underline { 8,000 } & \underline { 7,700 } \\\hline \text { Ending cash balance } & \$ 11,000 & \$ 17,000 & \$ 15,900 \\\hline\end{array}$$ Subsequently,the marketing department revised its figures for cash collections.New data are as follows: $52,000 in July,$56,000 in August,and $46,000 in September.Based on the new data,calculate the new projected cash balance at the end of August.

A) $22,000
B) $17,000
C) $12,000
D) $19,500

Correct Answer:

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