(14 points) Stockett, Inc. has prepared its third quarter budget and provided the following data: Jul Aug $51,000 39,800 47,00 Cash collections Cash payments Purchases of direct materials 31,000 21,200 700 ,200 17.700 Operating expenses Capital expenditures 2,300 1,600 3,100 The cash balance on June 30 is projected to be $4000. The company has to maintain a minimum cash balance of $5,000 and is authorized to borrow at the end of each month to make up any shortfalls. It may borrow in increments of $5,000 and has to pay interest every month at an annual rate of 5%. All 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. How much will the company have to borrow at the end of August? Select one: a $15.000 b. $5,000 c. $10,000 d $20,000