Western Company is preparing a cash budget for June. The company has $10,900 cash at the beginning of June and anticipates $31,100 in cash receipts and $36,700 in cash disbursements during June. Western Company has an agreement with its bank to maintain a minimum cash balance of $10,000. As of May 31, the company owes $15,000 to the bank. To maintain the $10,000 required balance, during June the company must:

1. Borrow $10,000.
2. Borrow $4,700.
3. Borrow $5,600.
4. Repay $5,300.
5. Repay $4,700.