Nobell Ltd Has a Cash Balance of $22,000 on 1

Multiple Choice

Nobell Ltd has a cash balance of $22,000 on 1 April 2017.It is now preparing the cash budget for the second quarter.Budgeted cash collections and payments are as follows:
$\begin{array}{|l|l|l|l|} \hline& \text { Apr } & \text { May } & \text { Jun } \\\hline \text { Cash collections } & \$ 20,000 & \$ 22,000 & \$ 25,000 \\\hline \text { Cash payments } & & &\\\hline \text { Purchases of inventory } & 5300 & 5800 & 4000 \\\hline \text { Operating expenses } & 6000 & 3500 & 6000\\\hline\end{array}$

There are no budgeted capital expenditures or financing transactions during the quarter.Based on the above data,calculate the projected cash balance at the end of April.

A) $42,000
B) $30,700
C) $36,700
D) $20,000