The cash balance on june 30 is projected to be $ 4 comma 200$4,200. 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 55%. 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 final projected cash balance at the end of august taking into consideration all the financing transactions.

Galwaysc electronics makes two products. model a requires component a and component c. model b requires component b and component c. new versions of both models are released each year with updated versions of all components. all components are sourced overseas, and abc contracts annually for a quantity of each component before seeing that year’s demand. components are only assembled into finished products once demand for each model is known. for the coming year, alwaysc’s purchasing manner has proposed ordering 500,000 units of component a, 630,000 of component b, and 1,000,000 units of component c. her boss has asked why she has recommended purchasing so much of components a and b when alwaysc will not have enough of component c to fully use all of the inventory of a and b. what factors might the purchasing manager cite to explain her recommended order? explain your reasoning.