Malachi, Inc The Cash Balance on June 30 Is Projected to Be

Malachi, Inc. has prepared its third quarter budget and provided the following data: $$\begin{array} { | l | r | r | r | } \hline & { \text { Jul } } & { \text { Aug } } & { \text { Sep } } \\\hline \text { Cash collections } & \$ 49,000 & \$ 39,900 & \$ 47,200 \\\hline \text { Cash payments: } & & & \\\hline \text { Purchases of direct materials } & 30,000 & 21,500 & 17,600 \\\hline \text { Operating expenses } & 12,500 & 8900 & 11,400 \\\hline \text { Capital expenditures } & 13,100 & 24,500 & 0 \\\hline\end{array}$$ The cash balance on June 30 is projected to be $4600. The company has to maintain a minimum cash balance of $5,000 and is authorized to borrow at the end of each month to make up any shortfalls. It may borrow in increments of $5,000 and has to pay interest every month at an annual rate of 5%. All financing transactions are assumed to take place at the end of the month. The loan balance should be repaid in increments of $5,000 whenever there is surplus cash. Calculate the final projected cash balance at the end of September.

A) $21,054
B) $6054
C) $7958
D) $55,158