Southland Company is preparing a cash budget for August. The company has $17,900 cash at the beginning of August and anticipates $122,600 in cash receipts and $135,400 in cash payments during August. Southland Company wants to maintain a minimum cash balance of $10,000.

The preliminary cash balance at the end of August before any loan activity is:

a.

$15,100

b.

$5,100

c.

$27,900

d.

$140,500

e.

($12,800)