Western Company is preparing a cash budget for June. The company has $11,900 in cash at the beginning of June and anticipates $30,100 in cash receipts and $34,700 in cash payments 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 has no loans outstanding. To maintain the $10,000 required balance, during June the company must:

Repay $7,300.

Borrow $4,600.

Borrow $10,000.

Repay $2,700.

Borrow $2,700.