Nyree Company Is Preparing Its Budget for the Third Quarter

question 95

Multiple Choice

Nyree Company is preparing its budget for the third quarter.The cash balance on June 30 was $34,000.Additional budgeted data are provided here: $$\begin{array} { | l | r | r | r | } \hline & { \text { July } } & { \text { Aug } } & { \text { Sep } } \\\hline \text { Cash collections } & \$ 52,000 & \$ 52,000 & \$ 54,000 \\\hline \text { Cash payments } & & & \\\hline \text { Purchases of direct materials } & 19,000 & 18,000 & 19,000 \\\hline \text { Operating expenses } & 26,000 & 24,000 & 27,000 \\\hline \text { Capital expenditures } & 11,000 & 10,000 & 14,000 \\\hline\end{array}$$ What amount should be shown in the cash budget for the cash balance at the end of July?

• A) $22,000
• B) $30,000
• C) $108,000
• D) $86,000

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