Diamonde Products Inc. would like to prepare a summary cash budget for the second quarter of 2013. The following information regarding operating activities from the cash receipts and cash disbursements budgets are available: April May June Cash receipts $10,000 $16,000 $25,000 Cash disbursements 8,000 18,000 16,000 The following information is also available:

The cash balance on March 31, 2013 was $3,000. Equipment costing $6,000 will be purchased in May. A down payment of $2,000 will be made in May and payments of $2,000 will be made in each subsequent month thereafter until the equipment is paid in full. Dividends in the amount of $1,000 will be paid in June.

What is the cash balance at the end of June expected to be?

A. $7,000 B. $9,000 C. $5,000