The Mayne Lumber Co. sells lumber and building supplies to builders and the general public. Actual sales for October and November were $18,000 and $25,000, respectively. Projected sales are $30,000 for December, $15,000 for January, and $12,000 for February. Sales terms call for a 2% discount for cash sales. Credit sales are due by the end of the month after purchase. Experience suggests that 60% of the sales are for cash, 70% of the credit sales will pay at the appropriate time, 20% of the credit sales will pay one month late, and 10% of the credit sales are never paid.

Fifty percent (50%) of merchandise purchases are paid in the month of purchase and the remainder is paid in the next month. Target ending inventories are 200 units plus 50% of next month's unit sales. The unit selling price is $10 and the unit purchase cost is $7. Selling and administrative expenses total $4,000 per month and are paid in the month in which they are incurred. Finally, a partial trial balance on December 1, reveals a cash balance of $2,000, accounts payable balance of $9,625 (reflecting the balance outstanding from November purchases), and an inventory balance of $11,900.

Required:

Determine Mayne's cash balance at the end of December.