Gamma Company Has Prepared a Preliminary Cash Budget for the Third

Multiple Choice

Gamma Company has prepared a preliminary cash budget for the third quarter as shown below:
$$\begin{array} { | l | l | l | l | } \hline \text { Cash budget } & { \text { Jul } } & { \text { Aug } } & \text { Sep } \\\hline \text { Beginning cash balance } & \$ 32,000 & \$ 10,000 & \$ 13,500 \\\hline \text { Plus: cash collections } & \$ 52,000 & \$ 52,000 & \$ 7,600 \\\hline \text { Cash available } & \$ 4,000 & \$ 62,000 & \$ 61,100 \\\hline \text { Less: cash payments: } & & & \\\hline \text { Purchases of inventory } & 34,000 & 8000 & 10,000 \\\hline \text { Operating expenses } & 40,000 & 30,500 & 30,700 \\\hline \text { Capital expenditures } & 0 & 8000 & 7400 \\\hline \text { Ending cash balance } & \$ 10,000 & \$ 13,500 & \$ 13,000 \\\hline\end{array}$$
Subsequently,the marketing department revised its figures for cash collections.New data are as follows: $54,000 in July,$56,000 in August and $42,000 in September.Based on the new data,calculate the new projected cash balance at the end of September.

A) $13,400
B) $13,000
C) $12,000
D) $19,500