The Volkswagen Group Company is preparing its cash budget for the months of April and May. The firm has established a 200,000 line of credit with its bank at a 12% annual rate of interest on which borrowings for cash deficits must be made in 10,000 increments. There is no outstanding balance on the line of credit loan on April 1. Principal repayments are to be made in any month in which there is a surplus of cash. Interest is to be paid monthly. If there are no outstanding balances on the loans, Volkswagen Group will invest any cash in excess of its desired end-of-month cash balance in UK . Treasury bills. Volkswagen Group intends to maintain a minimum balance of 100,000 at the end of each month by either borrowing for deficits below the minimum balance or investing any excess cash. Monthly collection and disbursement patterns are expected to be:

Collections. 50% of the current month's sales budget and 50% of the previous month's sales budget.

Accounts Payable Disbursements. 75% of the current month's accounts payable budget and 25% of the previous month's accounts payable budget.

All other disbursements occur in the month in which they are budgeted.

Budget Information

March April May

Sales 40,000 50,000 100,000

Accounts payable 30,000 40,000 40,000

Payroll 60,000 70,000 50,000

Other disbursements 25,000 30,000 10,000

Q: In April, Raymar's budget will result inRequired to answer. Single choice.