Vela Enterprises Inc. would like to prepare summary cash budget for March. The following information is available:

• The cash balance at 1 March was estimated to be $8000.
• March sales, all on account, were estimated to be $90 000. Sales are collected over a two-month period with 65 per cent collected in the month of sale and the remainder in the subsequent month.
• February sales on account were$65 000.
• Inventory purchases are expected to be $40 000 in March. The company pays for one-half of inventory purchases in the month of purchase and the remainder in the subsequent month. February's purchases were $35 000.
• Cash disbursements for selling and administrative expenses are expected to be $6000 in March.
• Depreciation expense for March is expected to be $7000.
• Loan and interest payments for March are expected to be $35 000.

What is the cash balance at the end of March expected to be?

$(8500)

$13 250

$10 750

$14 500