Ari, Inc Is Working on Its Cash Budget for December

Ari, Inc. is working on its cash budget for December. The budgeted beginning cash balance is $14,000. Budgeted cash receipts total $127,000 and budgeted cash disbursements total $126,000. The desired ending cash balance is $40,000. Any borrowing is in multiples of $1,000 and interest is paid in the month following the borrowing.
To attain its desired ending cash balance for December, the company needs to borrow:

A) $25,000.
B) $0.
C) $55,000.
D) $40,000.

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