Burchfield, Inc. has prepared its third quarter budget and provided the following data: Jul Aug...
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Burchfield, Inc. has prepared its third quarter budget and provided the following data: Jul Aug Sep $49,000$39,900$47.700 Cash collections Cash payments: Purchases of direct materials Operating expenses 121 0,000 21,300 17,400 8800 11,100 0 Capital expenditures 13,100 24,700 The cash balance on June 30 is projected to be $4000. The company has to maintain a minimum cash balance of $5,000 and is authorized to borrow at the end of each month to make up any shortfalls. It may borrow in increments of $5,000 and has to pay interest every month at an annual rate of 4%. All financing transactions are assumed to take place at the end of the month. The loan balance should be repaid in increments of $5,000 whenever there is surplus cash. Calculate the amount of principal repayment at the end of September
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