Western Company Is Preparing a Cash Budget for June

Western Company is preparing a cash budget for June.The company has $12,000 in cash at the beginning of June and anticipates $30,000 in cash receipts and $34,500 in cash payments during June.Western Company has an agreement with its bank to maintain a minimum cash balance of $10,000.As of May 31,the company has no loans outstanding.To maintain the $10,000 required balance,during June the company must:

A) Borrow $4,500.
B) Borrow $2,500.
C) Borrow $10,000.
D) Repay $7,500.
E) Repay $2,500.