Since January has a closing cash balance of 0, 10,000 should already be borrowed at the end of January to maintain the minimum cash balance of 10,000.Therefore, the new opening balance for February is 10,000, closing for February will be -50,000, and borrowing for the end of February would be 60,000Which one explanation would you think is more reasonable for this question?
During February Monroe Products will have paid back the borrowed $10,000. To save funds the short-term borrowing should only cover the period as short as possible.
Therefore at the end of February borrowing $70,000 will be required.
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