Avery Inc would like to prepare a summary cash budget for June. The following information is available: · The cash balance at June 1 was estimated to be $6,000. · June sales, all on account, were estimated to be $75,000. Sales are collected over a two-month period with 60 percent collected in the month of sale and the remainder in the subsequent month. May sales on account were $70,000. ·
Inventory purchases are expected to be $50,000 in June. The company pays for one-half of inventory purchases in the month of purchase and the remainder in the subsequent month. May purchases were $60,000. · Cash disbursements for selling and administrative expenses are expected to be $9,000 in June. · Depreciation expense for June is expected to be $3,000. What is the cash balance at the end of June expected to be?
A) $15,000
B) $12,000
C) $26,000
D) $29,000
A
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