The ABC Company has made the following monthly estimates of cash receipts and cash disbursements when preparing cash budgets for the next twelve months. ABC has beginning cash on hand of $20,000 and wants to maintain this minimum cash level throughout the next year. Cash Cash Month Receipts Disbursements January $100,000 $100,000 February $90,000 $110,000 March $80,000 $110,000 April $100,000 $150,000 May $120,000 $180,000 June $160,000 $180,000 July $200,000 $180,000 August $250,000 $180,000 September $250,000 $150,000 October $200,000 $110,000 November $140,000 $100,000 December $100,000 $100,000 A. Determine whether or not ABC will have a cash need during the next year.

B. If the company does need cash, in which month will it need the cash?

C. What is the most cash the company will need to borrow during the year (maximum amount borrowed in one month)?

D. Will the company have paid back all of its borrowings by the end of the year?