Southland Company is preparing a cash budget for August. The company has $18,300 cash at the beginning of August and anticipates $123,400 in cash receipts and $137,100 in cash disbursements during August. Southland Company wants to maintain a minimum cash balance of $10,000. To maintain the minimum cash balance of $10,000, the company must borrow:

Multiple Choice

• $0.

• $10,000.

• $5,400.

• $8,300.