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Question - Mary's Bed and Breakfast needs to keep a cash balance of at least $10,000. She has budgeted the following for the month of December:
Payments to suppliers $5,000
Payments to employees $4,000
Credit sales $8,000
Cash collections $7,500
Depreciation expense $500
Other cash expenses $1,000
Beginning cash balance $11,000
How much will Mary need to borrow to maintain the minimum cash balance?
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