Reference no: EM132631973

Chatelain Company is preparing its budget for the third quarter. The cash balance on June 30 was $34,000. Additional budgeted data are provided here:

                                                 Jul               Aug                     Sep
Cash collections              $52,000          $52,000           $54,000
Cash payments
Purchases of direct materials 19,000          18,000            19,000
Operating expenses               26,000          24,000              27,000
Capital expenditures              11,000          10,000               14,000

Problem 1: What amount should be shown in the cash budget for the cash balance at the end of July?

Option 1: $30,000

Option 2: $108,000

Option 3: $22,000

Option 4: $86,000