Problem
Hutchinson, Inc. provides the following data taken from its third quarter budget:
|
Jul
|
Aug
|
Sep
|
|
Cash collections
|
$66,000
|
$39,000
|
$44,000
|
|
Cash? payments:
|
|
|
|
|
Purchases of direct materials
|
29,000
|
33,000
|
25,000
|
|
Operating expenses
|
9,000
|
18,000
|
21,000
|
|
Capital expenditures
|
0
|
35,000
|
6,000
|
The cash balance on June 30 is projected to be $12,000.
Based on the above data, calculate the shortfall the company is projected to have at the end of August.