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Easton Company is projecting a cash balance of $41,000 in its December 31, 2012, balance sheet....

Easton Company is projecting a cash balance of $41,000 in its December 31, 2012, balance sheet. Easton’s schedule of expected collections from customers for the first quarter of 2013 shows total collections of $150,000. The schedule of expected payments for direct materials for the first quarter of 2013 shows total payments of $30,000. Other information gathered for the first quarter of 2013 is: sale of equipment $4,000; direct labor $60,000, manufacturing overhead $35,000, selling and administrative expenses $45,000; and purchase of securities $10,000. Easton wants to maintain a balance of at least $30,000 cash at the end of each quarter. What is the expected borrowings?

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