Delbert, Inc. has prepared its third quarter budget and provided the following data: Jul Aug Sep Cash collections $51,000 $39,500 $46,000 Cash payments: Purchases of direct materials 31,000 21,000 17,700 Operating expenses 12,500 8,900 11,600 Capital expenditures 13,600 24,000 The cash balance on June 30 is projected to be $4,200. The company has to maintain a minimum cash balance of $5,000 and 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 5%. All financing transactions are assumed to take place at the end of the month. 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? O A. $0 O B. $5,000 OC. $10,000 OD. $15,000