The cash balance on June 30 is projected to be $4,500

The company has to maintain a minimum cash balance of $5,000 and is authorized to borrow at the end of each month to make up any shortfalls. It may borrow in increments of $5,000 and has to pay interest every month at an annual rate of 5%.All financing transactions are assumed to take place at the end of the month. The loan balance should be repaid in increments of $5,000 whenever there is surplus cash. How much will the company have to borrow at the end of August?

Jul Sep $49,000 $40,000 $46,400 Aug Cash collections Cash payments: Purchases of direct materials31,00021,200 Operating expenses Capital expenditures 17,000 8,000 11,500 12,100 13,700 24,800