Bantam Industries has budgeted the following information for March:

Cash receipts	$	295,000
Beginning cash balance		11,000
Cash payments		316,000
Desired ending cash balance		31,000

If there is a cash shortage, the company borrows money from the bank. All cash is borrowed at the beginning of the month in $1,000 increments, and interest is paid monthly at 1% on the first day of the following month. The company had no debt before March 1. How much cash will the company need to borrow in March?

Multiple Choice

$34,000

$41,000

The company should not need to borrow any cash in March

$7,000