ABC Company has a starting cash balance of $70,000 at July 1. Budgeted Cash Receipts and Disbursements are as follows for the third quarter: Receipts Disbursements July $20,000 $60,000 August $30,000 $30,000 September $55,000 $20,000 They always want to maintain a minimum cash balance of $40,000. To do this they can borrow money in even $1,000 increments. They anticipate paying 15% interest on any short term financing with the money assumed to be borrowed on the first day of the month they need it and paid back on the last day of the month, when they pay it back. If they borrow any money, they like to pay it back as soon as they possibly can, and still maintain a $40,000 minimum cash balance BUT they cant pay a loan back in increments, any principal and interest is to paid back in one lump sum. What was the projected final ending cash balance as of Sept. 30th, after the impact of any borrowings, interest, and payback of loans if appropriate?

Options:

$44,833

$44,800

$63,500

$64,750

$130,833

$64,625