Stockett,Inc The Cash Balance on June 30 Is Projected to Be

Stockett,Inc.has prepared its third quarter budget and provided the following data: $$\begin{array} { | l | r | r | r | } \hline & { \text { Jul } } & { \text { Aug } } & { \text { Sep } } \\\hline \text { Cash collections } & \$ 50,000 & \$ 39,700 & \$ 47,600 \\\hline \text { Cash payments: } & & & \\\hline \text { Purchases of direct materials } & 30,000 & 22,000 & 18,000 \\\hline \text { Operating expenses } & 12,300 & 8,700 & 11,700 \\\hline \text { Capital expenditures } & 13,000 & 24,400 & 0 \\\hline\end{array}$$ The cash balance on June 30 is projected to be $4,500.The company has to maintain a minimum cash balance of $5,000 and is authorized to borrow at the end of each month to make up any shortfalls.It may borrow in increments of $5,000 and has to pay interest every month at an annual rate of 4%.All financing transactions are assumed to take place at the end of the month.The loan balance should be repaid in increments of $5,000 whenever there is surplus cash.How much will the company have to borrow at the end of August?

A) $15,000
B) $5,000
C) $10,000
D) $20,000