Sipan Retail Company was recently created with a beginning cash balance of $12,000. The owner expects the following for the first month of operations: Cash sales to customers $8,000 Sales on account to customers $30,000 Cash collected from account customers $12,000 Cost of merchandise purchased $35,000 Cash paid for merchandise purchased $24,500 Cost of merchandise sold $26,600 Cash paid for display cases $9,600 Selling and administrative expenses $4,000 The display cases above were purchased at the beginning of the month and are being depreciated at a rate of $200 per month. This amount is included in the selling and administrative expenses figure above. All other selling and administrative expenses are paid as incurred. Sipan wants to maintain a cash balance of $10,000. Any amount below this can be borrowed from a local bank as needed in increments of $1,000. All borrowings are made at month end. 75. In Sipan's cash budget for this first month, how much money will Sipan need to borrow at month end? A) $7,000 B) $16,000 C) $17,000 D) $28,000 76 In Sipan's budgeted income statement for this first month, what will net income (loss) be for this first month? A) $(1,000) B) $(2,000) C) $7,400 D) $9,500