Americana Company Is Preparing Its Budget for the Third Quarter

Multiple Choice

Americana Company is preparing its budget for the third quarter.Cash balance on July 31 was $32,000.Assume there is no minimum balance of cash required and no borrowing is undertaken.Additional budgeted data are provided here: $$\begin{array} { | l | r | r | r | } \hline &{ \text { Jul } } & { \text { Aug } } & { \text { Sep } } \\\hline \text { Cash collections } & \$ 54,000 & \$ 54,000 & \$ 54,000 \\\hline \text { Cash payments } & & & \\\hline \text { Purchases of direct materials } & 25,000 & 22,000 & 25,000 \\\hline \text { Operating expenses } & 31,000 & 26,000 & 29,000 \\\hline \text { Capital expenditures } & 13,000 & 7,000 & 16,000 \\\hline\end{array}$$ Calculate the projected balance of cash at the end of August.

A) $23,000
B) $109,000
C) $38,000
D) $31,000