Hutchinson, Inc. provides the following data taken from its third quarter budget:

	Jul	Aug	Sep
Cash collections	$ 67 comma 000$67,000	$ 43 comma 000$43,000	$ 40 comma 000$40,000
Cash payments:
Purchases of direct materials	32 comma 00032,000	32 comma 00032,000	48 comma 00048,000
Operating expenses	8 comma 0008,000	16 comma 00016,000	20 comma 00020,000
Capital expenditures	00	36 comma 00036,000	8 comma 0008,000

The cash balance on June 30 is projected to be

$ 10 comma 000$10,000.

Based on the above data, calculate the shortfall the company is projected to have at the end of August.

A. $40,000

B. $37,000

C. $4,000

D. $36,000