A Company Is Preparing a Cash Budget for June

Multiple Choice

A Company is preparing a cash budget for June.The company has $67,000 cash at the beginning of June and anticipates $82,330 in cash receipts and $93,520 in cash disbursements during June.This company has an agreement with its bank to maintain a cash balance of at least $65,000.As of May 31,the company owes $25,000 to the bank.To maintain the $65,000 required balance,during June the company must:

A) Borrow $9,190
B) Repay $13,190
C) Borrow $25,000
D) Repay $25,000
E) Repay $9,190