Cool Looks imports and distributes sunglasses in Southern California. The company's peak selling season has just passed and forecasted sales for the next few months is shown in the top row of the table. 40% of sales are cash and are collected in the month of the sale. 60% of sales are on credit, and are collected in the month following the sale. Cool Looks purchases merchandise one month in advance of sales and the cost of goods sold is 70% of sales. Cool Looks' suppliers are paid one month after the purchase. General and administrative expenses are $6,750 a month. Interest payments are $200 per month. Cool Looks will begin September with a cash balance of $10,000.
| Sales Forecast and Cash Budget |
| | Aug | Sept | Oct | Nov | Dec |
| Sales Forecast | $50,000 | $20,000 | $10,000 | $30,000 | $30,000 |
| Cash Sales | | | | | |
| Collections from last month | | | | | |
| Total Cash Inflows | | | | | |
| | | | | | |
| Purchases From Suppliers | | | | | |
| Payments to Suppliers | | | | | |
| General & Admin Expenses | | 6,750 | 6,750 | 6,750 | |
| Interest | | 200 | 200 | 200 | |
| Total disbursements | | | | | |
| | | | | | |
| Net Cash Flow | | | | | |
| | | | | | |
| Beginning cash balance | | $10,000 | | | |
| Plus: Net Cash Flows | | | | | |
| Ending Cash balance | $10,000 | | | | |
Referring to Cool Looks, what is the cash balance at the end of November?
◦ $17,150
◦ $19,150
◦ $19,750
◦ $21,250
◦ $22,000
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