3. At June 30, 2017, Pace Co. expected to report: June 30, 2017: Selected Balance Sheet Amounts Short-term Notes Payable $30,000 $225 Interest Payable As part of its planning process, Pace Co. wanted to complete a cash budget for the month of July 2017. The company uses the following budgetary assumptions when preparing the short-term financing section of that budget: Pace Co. has a short-term financing agreement with its bank. Under that agreement, the company may borrow cash to cover its operating needs o The company must maintain a $25,000 minimum cash balance as a condition of the short-term financing agreemen o The company borrows money on the first of the month, if needed, and uses any excess funds at the end of a month to repay the principal on the short-term loan. The company always borrows and repays principal in increments of $1,000 Interest of 9% annually on the outstanding short-term loan balance is paid on the first of the month following its accrual