1. Tako Corp. has provided a part of its budget for the second quarter:

	Apr	May	Jun
Cash collections	$40,000	$45,000	$42,000
Cash payments:
Purchases of direct materials	7200	4500	4500
Operating expenses	7000	7000	7000
Capital expenditures	20,000	4000	20,000

The cash balance on April 1 is $12,000. Assume that there will be no financing transactions or costs during the quarter. Calculate the projected cash balance at the end of May.

Select one:

A.

$47,300

B.

$62,800

C.

$52,000

D.

$15,500