Avery IncWould Like to Prepare a Summary Cash Budget for June

Multiple Choice

Avery Inc.would like to prepare a summary cash budget for June.The following information is available:
?The cash balance at 1 June was estimated to be $\$ 6000$ .
?June sales, all on account, were estimated to be $\$ 75000$ . Sales are collected over a two-month period with 60 per cent collected in the month of sale and the remainder in the subsequent month. May sales on account were $\$ 70000$ .
?Inventory purchases are expected to be $\$ 50000$ in June. The company pays for one-half of inventory purchases in the month of purchase and the remainder in the subsequent month. May purchases were $\$ 60000$ .
?Cash disbursements for selling and administrative expenses are expected to be $\$ 9000$ in June.
?Depreciation expense for June is expected to be $\$ 3000$ .

What is the cash balance at the end of June expected to be?

A) $15 000
B) $12 000
C) $26 000
D) $29 000