Xavier Company is preparing a cash budget for February. The company has $28,500 cash at...

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Accounting

Xavier Company is preparing a cash budget for February. The company has $28,500 cash at the beginning of February and anticipates $65,750 in cash receipts and $89,750 in cash disbursements during February. The agreement with the bank requires Xavier to maintain a minimum cash balance of $10,000. As of February 28, Xavier owes $15,000 to the bank. During February, Xavier:

can repay $10,000.

can repay $5,500

must borrow $5,500.

must borrow $10,000.

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