If the fi rm’s beginning cash balance for the budget period is $7,000, and this is its desired minimum balance, determine when and how much the fi rm will need to borrow during the budget period.

The fi rm has a $50,000 line of credit with its bank, with interest (10 percent annual rate) paid monthly.

For example, interest on a loan taken out at the end of September would be paid at the end of October and every month thereafter so long as the loan was outstanding. LO.1