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  3. acme, inc. has prepared its third quarter budget a

Acme, Inc. has prepared its third quarter budget and provided the following data Jul $49,000...

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Accounting

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Acme, Inc. has prepared its third quarter budget and provided the following data Jul $49,000 Aug $39,600 Se Cash collections Cash payments Purchases of direct materials Operating expenses Capital expenditures $47,200 30,000 12,500 13,300 21.400 8,600 24,100 17,000 11,400 The cash balance on June 30 is projected to be $4,400. The company has to maintain a minimum cash balance of S5,000 and is authorized to borrow at the end of each month to make up any shortialls. It may borrow in increments of $5,000 and has to pay interest every month at an annual rate of 4%. All financing transactions are assumed to take place at the end of the month. The loan balance should be repaid in increments of $5.000 whenever there is surplus cash. How much will the company have to borrow at the end of July? O A. SO OB. $5,000 OC. $15,000 O D. S10,000

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