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Monroe Products is preparing a cash forecast based on the following information: Monthly sales: December, $200,000; January, $200,000; February, $350,000; March, $400,000.All sales are on credit and collected the month following the sale. Purchases are 60% of next month’s sales and are paid for in the month of purchase. Other monthly expenses are $25,000, including $5,000 of depreciation. If the January beginning cash balance is $30,000, and Monroe is required to maintain a minimum cash balance of $10,000, how much short-term borrowing will be required at the end of February? A. $60,000 B. $70,000 C. $75,000 D. $80,000 |