At the beginning of the year 2022 when it first started, DEFT Co. Ltd. has a cash balance of $2m on the asset side and shareholder equity of $2m on the liabilities and equity side. DEFT later bought a machine with a useful life of 10 years on 1 January 2022 for $800,000 paid with cash. Depreciation expense is calculated on a straight-line basis. During 2022, DEFTs sole supplier of raw materials, Prompt Supply Co. Ltd supplies $5m worth of raw materials to DEFT. DEFT pays $3m to the supplier. DEFT revenue for the year is $10m, and the expenses related to raw materials, wages and utilities amount to $5m. The amount of raw materials that was used to generate the revenue for 2022 is $4m. DEFT collected $8m from customers in cash in 2022. Wages and utilities are fully paid for 2022. DEFT paid dividend of $1.4m in 2022. The tax rate is 20%.

As of 31 Dec 2022, what is the firms:

5. Cash balance?

A. 1,986,000.00 B. 2,346,720.00 C. 2,816,000.00 D. 2,942,310.00 E. 3,120,000.00