Diamonde Products Inc. would like to prepare a summary cash budget for the second quarter of 2009. 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, 2009 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?

		$1,000
		$7,000
		$4,000
		$5,000