Reference no: EM132526963

In order to prepare its cash budget for May, Mustang Company has gathered the following expected information:

April 30 expected cash balance, $45,000

Dividends to be paid in May, $12,000

Expected cash expenditures in May for operating costs, $36,800

Depreciation expected in May, $4,500

Expected cash collections in May, $89,000

Expected payments for merchandise in May, $56,200

Cash paid for equipment expected in May, $17,500

Mustang must maintain a minimum cash balance of $40,000.

Question 1: How much, if any, must Mustang borrow in May?