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A cash budget for the first two quarters of a retail company is given below (000 omitted). The company requires a minimum cash balance of

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A cash budget for the first two quarters of a retail company is given below (000 omitted). The company requires a minimum cash balance of at least $5,000 to start each quarter. If necessary, the company will borrow money from its maintain this balance. The company will pay no interest in Quarters 1, 2, and 3. It will repay as much of its borrowings possible as soon as it has more than $5,000 in cash in a given quarter. Suppose the company starts the first quarter with bank debt. How much total bank does the company expect to have at the end of the third quarter? a. $45,000 b. $41,000 c. $37,000 d. $39,000 e. None of the above

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