Ari, Inc. is working on its cash budget for December. The budgeted beginning cash balance is $31,000. Budgeted cash receipts total $144,000 and budgeted cash disbursements total $143,000. The desired ending cash balance is $74,000. To attain its desired ending cash balance for December, the company needs to borrow: Any borrowing is in multiples of $1,000 and interest is paid in the month following the borrowing.

To attain its desired ending cash balance for December, the company needs to borrow:

$106,000.

$74,000.

$0.

$42,000.