Berman Company Is Preparing Its Budget for the Third Quarter

Multiple Choice

Berman Company is preparing its budget for the third quarter.Cash balance on July 31 was $34,000.Assume there is no minimum balance of cash required and no borrowing is undertaken.Additional budgeted data are provided here: $$\begin{array} { | l | r | r | r | } \hline &{ \text { July } } &{ \text { Aug } } & { \text { Sep } } \\\hline \text { Cash collections } & \$ 50,000 & \$ 54,000 & \$ 54,000 \\\hline \text { Cash payments } & & & \\\hline \text { Purchases of direct materials } & 24,000 & 22,000 & 18,000 \\\hline \text { Operating expenses } & 33,000 & 21,000 & 34,000 \\\hline \text { Capital expenditures } & 10,000 & 7000 & 16,000 \\\hline\end{array}$$ Calculate the projected balance of cash at the end of August.

A) $16,000
B) $104,000
C) $45,000
D) $38,000