Scenic Company is preparing a cash budget for August. The company has $20,500 in cash at the beginning of August and anticipates $50,300 in cash receipts and $74,700 in cash payments during August. Scenic Company has an agreement with its bank to maintain a minimum cash balance of $10,000. As of July 31, the company has no loans outstanding. To maintain the $10,000 required balance, during August the company must:

Borrow $6,100

Repay $4,100

Borrow $4,800

Borrow $5,700