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The cash budget for the first three quarters of the HiCASH-345 company is given below ( 000 omitted ). The company requires a minimum cash

The cash budget for the first three quarters of the HiCASH-345 company is given below (000 omitted). The company requires a minimum cash balance of $5,000 to start each quarter. If necessary, the company will borrow money from its bank to maintain this balance. The company will pay no interest in Quarters 1, 2, and 3. It will repay as much of its borrowings as possible as soon as it has more than $5,000 in cash in a given quarter. Suppose the company starts the first quarter with no bank debt. How much total bank debt does the company expect to have at the end of the third quarter?

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Multiple Choice

$13,000

$7,000

$45,000

$39,000

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