Gamma Corp Subsequently, the Marketing Department Revised Its Figures for Cash Collections

Gamma Corp. has prepared a preliminary cash budget for the 3^rd quarter as shown below: $\begin{array}{|l|r|r|r|}\hline\text { Cash Budget } &{\text { Jul }} &{\text { Aug }} &{\text { Sep }} \\\hline \text { Beginning cash balance } & \$ 32,000 & \$ 4,400 & \$ 6,900 \\\hline \text { Plus: Cash collections } & \underline{49,400} & \underline{51,000} & \underline{44,600} \\\hline \text { Cash available } & \$ 81,400 & \$ 55,400 & \$ 51,500 \\\hline \text { Less: Cash payments: } & & & \\\hline \text { Purchases of inventory } & 36,000 & 9,000 & 11,000 \\\hline \text { Operating expenses } & 41,000 & 30,500 & 30,900 \\\hline \text { Capital expenditures } & 0 & \underline{9,000} & \underline{7,700} \\\hline \text { Ending cash balance } & \$ 4,400 & \$ 6,900 & \$ 1,900 \\\hline\end{array}$ Subsequently, the marketing department revised its figures for cash collections. New data are as follows: $52,000 in July, $50,000 in August, and $42,000 in September.
- Based on the new data, calculate the new projected cash balance at the end of August.

A) $8,500
B) $2,400
C) $7,000
D) $900