Kennison, Inc. has prepared its third quarter budget and provided the following data: Jul Aug Sep Cash collections $50,000 $39,700 $47,600 Cash payments: Purchases of direct materials 30,000 22.000 Operating expenses 12,300 Capital expenditures 13,000 8,700 24,400 18,000 11,700 0 The cash balance on June 30 is projected to be $4,500. 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 4%. 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?