Chal Mo, Inc, a merchandiser of herbal tea products, began operations on January 1. The company expects salot in its first month of operations to total $14,000.00% of the sales are expected to be cash sales. The remaining sales are expected to be on account. Full payment of all sales on account are expected in the month following the month of sale. Inventory purchases during January are expected to equal $4,000. Purchases are paid for in the month of purchase No purchase discounts are available Chai pays its sales start a 10% commission on all sales made. The commission expense is recognized in the month of sale and is paid on the 10th of the following month Cha's expected fixed monthly operating expenses aro 54,570. Included in this amount is 5500 of depreciation expense. Al cash operating expenses are paid in the month incurred. Chal plans to take out a business loan with a focal bank at the beginning of January. The entire amount borrowed will be immediately reinvested in the business to purchase assets and inventory. Interest will not begin to accrue until February, however, Chal is required to make a principal payment of $2.000 at the end of January Additionally, Chai plans to pay a cash dividend of 51,000 to its owners in January Challs required to maintain a minimum canh balance of $3,000 at the end of each month by the bank. How much would chai need to borrow from an established in of credit in January if it makes no adjustments to the above plan? OA $70 OB. $3,370 OC. $2,870 OD. $630 OE Chai would not need to borrow from an established line of credit