Question: N Company is preparing a cash budget for June. The company has $12,000 cash at the beginning of June and anticipates $30,000 in cash receipts

N Company is preparing a cash budget for June. The company has $12,000 cash at the beginning of June and anticipates $30,000 in cash receipts and $34,500 in cash disbursements during June. Northern Company has an agreement with its bank to maintain a cash balance of at least $10,000. To maintain the $10,000 required balance, during June the company must:

Borrow $10,000

Borrow $7,500

Borrow $2,500

Borrow $4,500

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