Carols Chocolate company

Carol's Chocolate Company has prepared its third quarter budget and provided the following data: Jul Aug Sep Cash collections $49,000 $39,500 $47,200 Cash payments: Purchases of direct materials 30,000 21,900 18.000 Operating expenses 12.400 8400 1 1,400 Capital expenditures 13,400 24.200 The cash balance on June 30 is projected to be $4000. The company has to maintain a minimum cash balance of $5,000 and is authori borrow at the end of each month to make up any shortfalls. It may borrow in increments of $5,000 and has to pay interest every month a rate of 4%. All financing transactions are assumed to take place at the end of the month. The loan balance should be repaid in incremen whenever there is surplus cash. Calculate the ending projected cash balance before financing for August O $5,000 O $46.700 {7833) $7167