Bantam Industries Has Budgeted the Following Information for March If There Is a Cash Shortage,the Company Borrows Money from

Multiple Choice

Bantam Industries has budgeted the following information for March: $$\begin{array} { l r } \text { Cash receipts } & \$ 271,000 \\\text { Beginning cash balance } & 5,000 \\\text { Cash payments } & 280,000 \\\text { Desired ending cash balance } & 25,000\end{array}$$ If there is a cash shortage,the company borrows money from the bank.All cash is borrowed at the beginning of the month in $1,000 increments,and interest is paid monthly at 1% on the first day of the following month.The company had no debt before March 1.How much cash will the company need to borrow in March?

A) $25,000
B) $29,000
C) The company should not need to borrow any cash in March
D) $4,000