Western Company is preparing a cash budget for June. The company has $10,600 in cash at the beginning of June and anticipates $31,400 in cash receipts and $37,300 in cash payments during June. Western Company has an agreement with its bank to maintain a minimum cash balance of $10,000. As of May 31, the company has no loans outstanding. To maintain the $10,000 required balance, during June the company must:

a. Borrow $5,300.

b. Repay $4,900.

c. Borrow $10,000.

d. Repay $5,100.

e. Borrow $4,900.