Jensen Company Is Preparing a Cash Budget for the Month

question 136

Multiple Choice

Jensen Company is preparing a cash budget for the month of June.The following information is available:
$\begin{array}{ll}\text { Cash Balance, May 31, } 2015 & \$ 10,000 \\\text { Cash collections from customers in June } & 76,000 \\\text { Cash paid for merchandise in June } & 42,000 \\\text { Paid operating expenses in June } & 17,000 \\\text { Purchase furniture for cash in June } & 5,000 \\\text { Depreciation expense in June } & 2,000 \\\text { Amortization expense in June } & 3,000\end{array}$
The minimum cash balance desired is $10,000.What are the net cash receipts and disbursements for the month of June?

• A) $7,000
• B) $10,000
• C) $12,000
• D) $17,000