I5) A3+ has prepared its 3rd quarter budget and provided the following date:

The cash balance on June 30 is projected to be $4,001 The company has to maintain a minimum cash balance of 55,003 and is authorized to borrow at the end of each month to make up any shortfalls. It may borrow in increments of $5,000and has to pay interest every month at an annual rate of 5%. AU financing transactions are assumed to take place at the end of the month. The loan balance should be repaid in increments of $5,000 whenever there is surplus cash. 1 low much will the company have to borrow at the end of August?

A) $15,000

B) $5,000

C) $10,000

D) $20,000

Cash collections Cash payments: Purchases of inventory Operating expenses Capital expenditures July $50,000 31,000 12,000 13,000 Aug $40,000 22,000 9,000 25,000 Sep $48,000 18,000 11,600 0