A firm budgets cash collections of $150,000 in July, $105,000 in August, and $72,000 in September. The firm also budgets 15,000 direct materials units purchases in July, 20,000 in August, and 10,000 in September. Direct materials are $3.50 per unit and half of the cost of each month is paid in the month of purchase (the remainder is the following month)

Below are budgeted details FOR THE MONTH OF AUGUST that come from the firm's master budgets.

Direct Labor: 1,000 direct labor hours ($8 per hour, paid in cash) Overhead: $10,000 (i.e. $7,500 property taxes and $2,500 depreciation cost) SG&A: $17,500 ($5,000 sales commission, paid in cash, and $12,500 depreciation cost) Cash budget: $20,000 beginning cash budget balance for August

(The firm has a monthly minimum cash balance of $20,000. If the firm is projected to have less than $20,000 in cash for a month, it borrows enough cash to raise the cash balance to $20,000.)

The firm plans to make a $20,000 capital purchase in August. What is the firm's budgeted ending cash balance for August?

	a.	$20,000
	b.	$43,250
	c.	$23,250
	d.	$14,500