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Delbert, Inc. has prepared its third quarter budget and provided the following data: Jul Aug Sep $51,000 $39,600 $46,500 Cash collections Cash payments: Purchases of

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Delbert, Inc. has prepared its third quarter budget and provided the following data: Jul Aug Sep $51,000 $39,600 $46,500 Cash collections Cash payments: Purchases of direct materials 30,000 21,70017,300 12,500 8,200 11,700 Capital expenditures 13,100 25,000 The cash balance on June 30 is projected to be $4,500. The company has to maintain a minimum cash balance of $5,000 arn is authorized to borrow at the end of each month to make up any shortfalls. It may borrow in increments of $5,000 and has to pay interest every month at an annual rate of 4%. All financing transactions are assumed to take place at the end of the mont The loan balance should be repaid in increments of $5,000 whenever there is surplus cash. How much will the company have to borrow at the end of July? OA. $10,000 $5,000 B. O D. $15,000 Click to select your answer. 126

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