Bantam Industries has budgeted the following information for March:
Cash receipts - $307,000
Beginning cash balance - $14,000 Cash payments - $334,000
Desired ending cash balance - $34,000 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? Multiple Choice a.$47,000 b.$8,500 c.$38,500
