QUESTION 26 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 3 0,000 22,000 18,000 Operating expenses 12,300 8 700 11,700 Capital expenditures 13.000 24.400 0 The cash balance on June 30 is projected to be $4500. 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? murpheline terme de long to make up bong to leto bo S4500.400 O $20,000 How much will the como take place at the borrow in ineren $5,000 $15,000 $10,000 QUESTION 27 When a company receives a dividend payment on investments in equity securities with no significant influence, the total equity will increase total liabilities will decrease total assets will remain unaffected long-term assets will decrease