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Question - Loachapoka Company budgeted the following transactions for April 2004:
Sales (75% collected in month of sale) $200,000
Cash Operating Expenses 105,000
Cash Purchases of Capital Investment 75,000
Cash Payment of Dividends 20,000
Depreciation on Operating Assets 15,000
The beginning cash balance was $50,000. The company desires to have a $25,000 ending cash balance. What is the amount of the borrowing (repayment)?
a. Borrowing $25,000
b. Borrowing $40,000
c. There is no borrowing or repayment.
d. Repayment $50,000
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