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

question 89

Multiple Choice

Gunda Corp.has prepared a preliminary cash budget for the third quarter as shown below: $$\begin{array} { | l | r | r | r | } \hline \text { Cash Budget } &{ \text { July } } & { \text { Aug } } & { \text { Sep } } \\\hline \text { Beginning cash balance } & \$ 34,000 & \$ 13,000 & \$ 18,500 \\\hline \text { Plus: Cash collections } & \$ 54,000 & \$ 52,000 & \underline { 45,000 } \\\hline \text { Cash available } & 88,000 & \$ 65,000 & \$ 63,500 \\\hline \text { Less: Cash payments: } & & & \\\hline \text { Purchases of direct materials } & 34,000 & 8000 & 11,000 \\\hline \text { Operating expenses } & 40,000 & 30,500 & 30,700 \\\hline \text { Capital expenditures } & \underline { 1000 } & \underline { 8000 } & \underline { 7000 } \\\hline \text { Ending cash balance } & \$ 13,000 & \$ 18,500 & \$ 14,800 \\\hline\end{array}$$ Subsequently,the marketing department revised its figures for cash collections.New data are as follows: $53,000 in July,$55,000 in August,and $46,000 in September.Based on the new data,calculate the new projected cash balance at the end of August.

• A) $20,500
• B) $18,500
• C) $12,000
• D) $17,800

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