Gibbs Company Gibbs Company Prepared a Cash Budget by Quarters

Gibbs Company Gibbs Company prepared a cash budget by quarters for the upcoming year.Missing data amounts are indicated with question marks or lower case letters; these lower case letters will be referred to in the questions that follow.
Gibbs requires a minimum balance of $10,000 to start a quarter.
All data are in thousands.
Gibbs Corporation
Cash Budget
$\begin{array}{|l|l|l|l|l|}\hline & \text { QTR 1 } & \text { QTR 2 } & \text { QTR 3 } & \text { QTR 4 } \\\hline \text { Cash balance, beginning } & \$ 16 & \$ \text { e } & \$ 13 & \$ 10 \\\hline \text { Add collections from customers } & \text { a } & 70 & 67 & 80 \\\hline \text { Total cash available } &?& ? & 80 & 90 \\\hline \text { Less cisbursements: } & & & & \\\hline \text { Purchase of inventory } & 31 &c & 40 & 35 \\\hline \text { Operating expenses } & 25 & 22 & 7 & 15 \\\hline \text { Equipment purchases } & 10 & 14 & 19 & 0 \\\hline \text { Dividends } &0 & 6 & 0 & 5 \\\hline \text { Total disbursements } & 66 &?& \text { f } & 55 \\\hline \begin{array}{l}\text { Excesss (deficiency) of cash avrilable } \\\text { over disbursements }\end{array} & 7 & 17 &(2) & 35 \\ \hline \text { Financing: } & & & & \\\hline \text { Borrowings: } & \text { b } & - & 12 & - \\\hline \text { Repayments(including interest) } & \text { - } & \text { d } & - & (12) \\\hline \text { Total financing } & ? & & 12 & (12) \\\hline \text { Cash balance, ending } & \$ 10 & \$ ? & \$ 10 & \$ 23 \\\hline & === &=== & ==== & === \\\hline\end{array}$ Refer to Gibbs Company.The borrowing required during the first quarter to meet the minimum cash balance (item b) is:

A) $0
B) $7
C) $10
D) $ 3