$ Headsmart is currently preparing a cash budget for the first two months of fiscal year 2021. The budget is only partially completed as shown below. The following additional information has been gathered to complete it. 1. A line of credit is available at a local bank that allows the company to borrow up to $80,000. All borrowing takes place at the beginning of a month, and all repayment takes place at the end of a month. Any interest incurred during the periods will be paid only at the end of February. The interest rate is currently 18% per year. 2. The company desires a minimum cash balance of $20,000 at the end of each month. The cash balance at the beginning of January was $30,000. 3. Additional expenditures: Property taxes of $20,000 will be paid in January and new equipment will be purchased for $10,000 in February January February Cash balance, beginning $ Cash receipts: Cash collections 100,000 280,000 Total cash available Cash disbursements: Production 70,000 120,000 Selling & administrative 70,000 90,000 Additional expenditures Total disbursements Excess (deficiency) of cash available over disbursements Financing: Borrowings (a) Repayments Interests (b) Total financing . Cash balance, ending $ $ (c) balance, ending $ $ (c) How much borrowing must be planned in January as will be shown in (a)? O $50,000 O $30,000 No borrowing is necessary, O $10,000