Problem:
Laurey Inc. is working on its cash budget for May. The budgeted beginning cash balance is $45,000. Budgeted cash receipts total $129,000 and budgeted cash disbursements total $124,000. The desired ending cash balance is $60,000.
Required:
Question: To attain its desired ending cash balance for May, the company needs to borrow:
Note: Provide support for your rationale.