Tokyo Corp has prepared a preliminary cash budget for the third quarter as shown below

Cash Budget Jul Aug Sep
Beginning cash balance $34,000 $13,000 $18,500
Plus: Cash collections $54,000 $52,000 45,000
Cash available 88,000 $65,000 $63,500
Less: Cash payments:
Purchases of direct materials 34,000 8,000 11,000
Operating expenses 40,000 30,500 30,700
Capital expenditures 1,000 8,000 7,000
Ending cash balance $13,000 $18,500 $14,800

Subsequently, the marketing department revised its figures for cash collections. New data are as follows: $53,000 in July, $55,000 in August, and $46,000 in September. Based on the new data, calculate the new projected cash balance at the end of August.
A) $20,500
B) $18,500
C) $12,000
D) $17,800

A .A)
Cash Budget Jul Aug Sep
Beginning cash balance $34,000 $12,000 $20,500
Plus: Cash collections $53,000 $55,000 46,000
Cash available $87,000 $67,000 $66,500
Less: Cash payments:
Purchases of direct materials 34,000 8,000 11,000
Operating expenses 40,000 30,500 30,700
Capital expenditures 1,000 8,000 7,000
Ending cash balance $12,000 $20,500 $17,800