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23) 23) Delbert, Inc. has prepared its third quarter budget and provided the following data Aug Sep $50,000$39,700 47,300 Cash collections Cash pavments Purchases of
23) 23) Delbert, Inc. has prepared its third quarter budget and provided the following data Aug Sep $50,000$39,700 47,300 Cash collections Cash pavments Purchases of direct materials Operating expenses 30,000 21,500 12,400 13,400 24,500 17,800 11,500 0 8800 Capital expenditures The cash balance on June 30 is projected to be $4600. The company has to maintain a minimum cash balance of $5,000 and is authorized to borrow at t shortfalls. It may borrow in increments of $5,000 and has to pay interest every month at an annual rate of 4%. All financing transaction 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 July? s are assumed to take place at the end of the month. The loan A) $10,000 B) $15,000 C) $5,000 D) $0
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