Jager Corp. has prepared a preliminary cash budget for the third quarter as shown below:
Cash Budget
Jul
Aug
Sep
Beginning cash balance
$36,000
$11,400
$16,900
Plus: Cash collections
$49,400
$53,000
44,800
Cash available
85,400
$64,400
$61,700
Less: Cash payments:
Purchases of direct materials
35,000
9000
11,000
Operating expenses
39,000
30,500
30,700
Capital expenditures
0
8000
7000
Ending cash balance
$11,400
$16,900
$13,000
Subsequently, the marketing department revised its figures for cash collections. New data are as follows: $57,000 in July, $56,000 in
August, and $44,000 in September. Based on the new data, calculate the new projected cash balance at the end of September.
$22,800
$13,000
$19,000
$27,500