During December, the Capital Budget Indicates a $280,000 Purchase of Equipment

Multiple Choice

During December, the capital budget indicates a $280,000 purchase of equipment for cash.The ending November cash balance is budgeted to be $40,000.Cash receipts are $840,000, and cash disbursements are $610,000 during December.The company wants to maintain a minimum cash balance of $20,000.What is the minimum cash loan that must be planned to be borrowed from the Bank during December?

A) $30,000
B) $10,000
C) $50,000
D) $0