Below are the forecasted cash receipts and cash payments for Kaden Company for the first four months of the year.

January February March April

Budgeted cash collections 100,000 80,000 75,000 146,000

Budgeted cash payments:

Operating expenses 127,000 105,000 92,000 120,000

Dividends 0 20,000 0 0

Equipment purchase 0 40,000 0 0

Total budgeted cash payments 127,000 165,000 92,000 120,000

On January 1, Kaden Company had a cash balance of $50,000. Kaden has a policy of maintaining a cash balance of at least $10,000 at the end of each month.

Assume that Kaden Company had no outstanding loans on January 1. Also assume that there is no interest cost for its loans. What it the balance in Kaden Companys loans as of the end of April?

• $17,000

• $26,000

• $63,000

• $9,000

• $0