19. ZOOM IN

ABC Firm is a specialty retail firm that sells only one product. It prepares a rolling budget for the upcoming three months. At the end of October, the cash budget contained the following summary information: November 76,000 Cash Available Total Cash Payments Cash Over or Short December 58,000 44,000 14,000 January 73,000 66.000 7.000 89.700 (13,700) You may assume that all the numbers currently included are correctly computed. The firm has a policy of maintaining a minimum cash balance of $5,000. At the end of October, a loan of $10,000 was outstanding. The loan carries an interest rate of 3%. Interest payments must be made each month based on the balance outstanding at the end of the prior month. How much, if any, will the firm budget to borrow in November? Multiple Choice $13,700 $18,710 $18,700 O O $18,725