Pentangle Company has prepared a preliminary cash budget for the 3^rd quarter as shown below:

\begin{array}{|l|r|r|r|}\hline\text { Cash Burdget } & \text { Jul } & \text { Aug } & \text { Sep } \\\hline \text { Beginning cash balance } & \$ 32,000 & \$ 4,400 & \$ 6,900 \\\hline\text { Cash collections } & 49,400 & 51,000 & 44,600 \\\hline \text { Cash available } & 81,400 & 55,400 & 51,500 \\\hline\text { Cash payments: }\\\hline \text { Purchases of inventory } & 36,000 & 9,000 & 11,000 \\\hline \text { Operating expenses } & 41,000 & 30,500 & 30,900 \\\hline \text { Capital expenditures } & 0 & 9,000 & 7,700 \\\hline \text { Total cash payments } & \$ 77,000 & \$ 48,500 & \$ 49,600 \\\hline \text { Ending cash balance } & \$ 4,400 & \$ 6,900 & \$ 1,900 \\\hline\end{array}

Subsequently, the marketing department revised its figures for cash collections. New data are as follows: $52,000 in July, $50,000 in August, and $42,000 in September.
- Based on the new data, what is the new projected cash balance at the end of August?
A) $8,500
B) $2,400
C) $7,000
D) $900

Purchases for May Were $100,000, While Expected Purchases for June

Multiple Choice

Correct Answer:VerifiedUnlock this answer nowGet Access to more Verified Answers free of chargeAccess For Free

Correct Answer:
Verified
Unlock this answer now
Get Access to more Verified Answers free of charge