Answer:
Borrowing require = $2,500
so correct option is d.Borrow $2,500
Explanation:
given data
cash at beginning = $12,000
cash receipts anticipates = $30,000
cash payments = $34,500
minimum cash balance = $10,000
required balance = $10,000
to find out
To maintain the $10,000 required balance
solution
we get here cash at the end of the year that is
cash at the end of the year = Beginning cash balance + Cash Receipts - cash payments .................1
cash at the end of the year = $12000 + $30000 - $34500
cash at the end of the year = $7500
and
we know minimum cash balance maintained is $10,000
so Borrowing require is here as
Borrowing require = $10000 - $7500
Borrowing require = $2,500
so correct option is d.Borrow $2,500
