Zhang Industries Is Preparing a Cash Budget for June

Multiple Choice

Zhang Industries is preparing a cash budget for June. The company has $25,000 cash at the beginning of June and anticipates $95,000 in cash receipts and $111,290 in cash disbursements during June. The company has no loans outstanding on June 1. Compute the amount the company must borrow, if any, to maintain a $20,000 cash balance.

A) $16,290.
B) $12,290.
C) $28,710.
D) $6,290.
E) $11,290.