Answer:
a. $5,000
Explanation:
The computation of the borrowing is shown below:
Cash balance, May 1 $20,000
Add: Cash collections from customers $80,000
Total cash available $100,000
Less:
Cash disbursements for merchandise purchases -$35,000
Cash disbursements for selling and administrative expenses -$40,000
Excess cash available $25,000
And, there is a minimum cash balance of $30,000
so we have to borrowed $5,000
