The company provides the following information regarding the cash budget for next year:

	Quarter 1	Quarter 2	Quarter 3	Quarter 4
Beginning cash balance	$5,000	$5,000	$5,000	$5,000
Excess (Deficiency)	($3,000)	$2,000	($2,500)	$1,000

The company's policy is to start each quarter with a cash balance of $5,000. The company has access to a line of credit in the amount of $50,000 for any short term borrowing needs and pays the loans off as quickly as possible. The company assumes the cash budget for the year will begins with no loans. What is the expected loan balance at the end of Quarter 2 (ignore interest)?

$1,000

$3,000

$11,000

$0

$4,000