Southland Company is preparing a cash budget for August. The company has $17,000 cash at the beginning of August and anticipates $120,800 in cash receipts and $134,500 in cash payments during August. Southland Company wants to maintain a minimum cash balance of $10,000. To maintain the minimum cash balance of $10,000, the company must borrow:
A. $7,000.
B. $0.
C. $27,700.
D. $10,000.
E. $6,700.
Answer: E
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What will be an ideal response?
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