Zygot Biotech Company Is Budgeting for the 3rd Quarter, and Provides

Multiple Choice

Zygot Biotech Company is budgeting for the 3rd quarter, and provides the following data:
$\begin{array}{|l|r|r|r|}\hline& \text { Jul } & \text { Aug } & \text { Sep } \\\hline \text { Cash collections } & \$ 50,000 & \$ 40,000 & \$ 48,000 \\\hline \text { Cash payments: } & & & \\\hline \text { Purchases of inventory } & 31,000 & 22,000 & 18,000 \\\hline \text { Operating expenses } & 12,000 & 9,000 & 11,600 \\\hline \text { Capital expenditures } & 0 & 19,000 & 0 \\\hline\end{array}$

The cash balance at June 30 is projected to be $5,600. There are no financing transactions planned in the 3rd quarter.
- What is the projected cash balance at the end of July?

A) $21,000
B) $12,600
C) $18,000
D) $2,600