Building Blocks Has a Beginning Cash Balance for the Quarter

Building Blocks has a beginning cash balance for the quarter of $800. The firm's president requires a minimum cash balance of $800 be maintained at all times. Further, the president has a policy of
Borrowing when necessary to maintain that balance. If funds have been borrowed, then the
President requires they be repaid as soon as excess funds are available. How much will the firm
Borrow or repay this quarter if the quarterly receipts are $2,565 and the quarterly disbursements
Are $2,607?

A) Borrow $42.
B) Borrow $38.
C) Neither borrow nor repay.
D) Repay $38.
E) Repay $42.