Question: Francis Manufacturing Co. is currently preparing its cash budget for next month and has gathered the following info.:
Expected cash receipts.....................$39,400
Expected disbursements:
Direct materials........................... $12,000
Direct labor............................... $9,000
Manufacturing overhead.................. $11,500
Selling and administrative expenses...$22,000
The beginning cash balance will be $6,000 and the company requires a minimum cash balance at the end of the month of $5,000. How much will the company NEED TO BORROW to meet its cash needs for the month?
A) $9,100
B) $14,100
C) $20,100
D) None of the above.