Bantam Industries Has Budgeted the Following Information for March If There Is a Cash Shortage, the Company Borrows Money

Bantam Industries has budgeted the following information for March: $$\begin{array} { | l | r | } \hline \text { Cash receipts } & \$ 271,000 \\\hline \text { Beginning cash balance } & 5,000 \\\hline \text { Cash payments } & 280,000 \\\hline \text { Desired ending cash balance } & 25,000 \\\hline\end{array}$$ If there is a cash shortage, the company borrows money from the bank. All cash is borrowed at the beginning of the month in $1,000 increments and interest is paid monthly at 1% on the first day of the following month. The company had no debt before March 1^st. How much cash will the company need to borrowed in March?

A) $25,000
B) $29,000
C) The company should not need to borrow any cash in March
D) $4,000