Chatelain Company Is Preparing Its Budget for the Third Quarter

Multiple Choice

Chatelain Company is preparing its budget for the third quarter.The cash balance on June 30 was $32,000.Additional budgeted data are provided here: $$\begin{array} { | l | r | r | r | } \hline & { \text { Jul } } & { \text { Aug } } & { \text { Sep } } \\\hline \text { Cash collections } & \$ 54,000 & \$ 53,000 & \$ 54,000 \\\hline \text { Cash payments } & & & \\\hline \text { Purchases of direct materials } & 22,000 & 24,000 & 21,000 \\\hline \text { Operating expenses } & 21,000 & 19,000 & 27,000 \\\hline \text { Capital expenditures } & 8,000 & 9,000 & 13,000 \\\hline\end{array}$$ What amount should be shown in the cash budget for the cash balance at the end of July?

A) $19,000
B) $35,000
C) $105,000
D) $86,000