Felton Manufacturing Provides the Following Data Excerpted from Its 3rd

Multiple Choice

Felton Manufacturing provides the following data excerpted from its 3rd quarter budget:
$\begin{array}{|l|r|r|r|} \hline& \text { Jul } & \text { Aug } & \text { Sep } \\\hline \text { Cash collections } & \$ 50,000 & \$ 40,000 & \$ 48,000 \\\hline \text { Cash payments: } & & & \\\hline \text { Purchases of inventory } & 31,000 & 22,000 & 18,000 \\\hline \text { Operating expenses } & 12,000 & 9,000 & 11,600 \\\hline \text { Capital expenditures } & 0 & 25,000 & 0\\\hline\end{array}$
The cash balance at June 30 is projected to be $4,000.Based on the above data, how much cash shortfall is the company projected to have at the end of August?

A) $6,500
B) $2,700
C) $5,000
D) $4,770