B.G. Barns, Inc. uses the percentage of sales method to forecast its pro forma financial statements. Based on historical financial statements, the following relationships can be established between several items and sales:

Cost of Goods Sold (COGS) is 65% of sales

Selling and administrative (S&A) Expense is 15% of sales

Cash and equivalents is 6% of sales

Accounts receivable is 8% of sales

Inventories are 24% of sales

Net fixed assets are 32% of sales

Accounts payable is 15% of sales

Accruals are 10% of sales

B.G. Barns is projecting a sales revenue growth of 13% in the upcoming year. The company currently has 20,000 shares of common stock outstanding and it plans on maintaining its dividend policy of paying out 30% of its net income as dividends. It is currently paying 6% interest on its notes payable ($3,000 note) and 8% on its long-term debt ($17,500 bond). The company has a 40% tax rate.

Based on the above information, assume current year sales are $125,000, which of the following amounts will be represented as Cash and Equivalents on the upcoming year's pro forma balance sheet?

a)	$7,875.
b)	$7,475.
c)	$8,475.
d)	$7,500.