Stem Group LLC has the following information for the first quarter of 2021:

Total Cash Collections: $4,000

Total Cash Disbursements: $7,000

Beginning Cash Balance: $2,000

Stem Group likes to start each quarter with at least $3,000 in beginning cash. Does Stem Group LLC need additional financing at the end of Q1? If yes, how much?

• A.

  Yes, $4,000

• B.

  Yes, $6,000

• C.

  No.

• D.

  Yes, $1,000