The company has an operating line of credit established with its bank. The line of credit permits Tandur Manufacturing to borrow in increments of $5,000 to cover any cash shortfalls. Tandur has an internal operating policy that requires that their ending cash balance, for any quarter, must not fall below $7,500 (i.e., if the ending cash balance in any quarter is less than $7,500 the Tandur must borrow (in increments of $5,000) an amount that will insure that their ending cash balance for the quarter is a minimum of $7,500). All borrowing is assumed to occur at the beginning of the quarter in which the funds are required and all repayment is assumed to be made at the end of the quarter in which funds are available for repayment. Simple interest at the rate of 10% (annual) is paid on a quarterly basis on all outstanding short term loans. All repayments are in multiples of $1,000 and they are not allowed to repay any principle in a quarter in which they borrow funds