me Tools passenger-Inform... V39-2.pdf V39-2.pdf 7 10 70.3% Question 98 (8 marks) ABC Company is preparing its cash budget for the month of January 2021. It has completed everything except the financing section. ABC's assumptions are: 1) The cash balance cannot go below $44,000. 2) The interest rate per month is 1% 3) Any necessary borrowing occurs at the beginning of the month. 4) Any loan repayments occur at the end of the month. 5) Interest expense is added to the loan payable. 6) ABC Company tries to minimize the amount of its loan, while making sure its cash balance does not fall below $44,000 Here is their cash budget so far. Cash balance, beginning Add cash collections 44,000 264,000 Total cash available 308,000 Total cash disbursements 277,000 Cash available before financing (A) 31,000 Financing: Beginning loan balance 35,000 Add: Borrowings (B) 22 Add: Interest expense ?? Loan balance before repayments ?? Less repayments (C) ?? Ending loan balance ?? Ending cash balance (A + B-C) 22 Part 1 What would be the ending loan balance in their cash budget? $44,000 A) B) $63,020 C) $48,130 D) $48,350 E) $48,480 F) $48,000 825 000