Webster Corporation Is Preparing Its Cash Budget for April

Multiple Choice

Webster Corporation is preparing its cash budget for April.The March 31 cash balance is $36,400.Cash receipts are expected to be $641,000 and cash payments for purchases are expected to be $608,500.Other cash expenses expected are $27,000 selling and $33,500 general and administrative.The company desires a minimum cash balance at the end of each month of $30,000.If necessary,the company borrows enough cash to meet the minimum using a short-term note.The amount Webster must borrow during April is:

A) $0.
B) $21,600.
C) $8,400.
D) $98,900.
E) $58,000.