Americana Company Is Preparing Its Budget for the Third Quarter

Americana Company is preparing its budget for the third quarter.Cash balance on July 31 was $30,000.Assume there is no minimum balance of cash required and no borrowing is undertaken.Additional budgeted data are provided here: $$\begin{array} { | l | r | r | r | } \hline & { \text { Jul } } & { \text { Aug } } & { \text { Sep } } \\\hline \text { Cash collections } & \$ 50,000 & \$ 56,000 & \$ 50,000 \\\hline \text { Cash payments } & & & \\\hline \text { Purchases of direct materials } & 25,000 & 19,000 & 21,000 \\\hline \text { Operating expenses } & 22,000 & 29,000 & 34,000 \\\hline \text { Capital expenditures } & 9,000 & 5,000 & 11,000 \\\hline\end{array}$$ Calculate the projected balance of cash at the end of August.

A) $(23,000)
B) $3,000
C) $38,000
D) $33,000