Jul Kennison, Inc. has prepared its third quarter budget and provided the following data: Aug Sep Cash collections $49,000 $39,500 $47,100 Cash payments: Purchases of direct materials 28,000 21,800 17,000 Operating expenses 12,300 9,100 11,400 Capital expenditures 13,800 24,700 The cash balance on June 30 is projected to be $4,100. 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 August? O A. $5,000 O B. $10,000 OC. $20,000.00 OD. $15,000