22. Hot Mama's has prepared its fourth quarter budget and provided the following data: Nov $48,500 Dec Oct $52,000 $51,200 Cash collections Cash payments: Purchases of direct materials Operating...

Extracted text: 22. Hot Mama's has prepared its fourth quarter budget and provided the following data: Nov $48,500 Dec Oct $52,000 $51,200 Cash collections Cash payments: Purchases of direct materials Operating expenses Capital expenditures 35,000 13,250 15,650 22,450 9,650 23,900 16,250 12,500 The cash balance on September 30 is projected to be $5000. The company has to maintain a minimum cash balance of $6,500 and is authorized to borrow at the end of each month to make up shortfalls. It may borrow in inerements of $6,000 and has to pay interest every month at an any 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 $6,000 whenever there is surplus cash. Calculate the ending projected cash balance before financing for November. A) S(2,900) B) $3,100 C) $6.500 D) S53.600