The treasurer for Chic Man Clothing must decide how much money the company needs to borrow in July. The balance sheet for June 30, 2010 is presented below:

Chic Man Clothing Balance Sheet June 30, 2010

Cash $87,000                                                           Accounts payable $550,000

Marketable securities 123,000                                   Long-term debt 350,000

Accounts receivable 360,000                                     Common stock 130,000

Inventory 300,000                                                      Retained earnings 270,000

Total current assets 870,000                        Total liabilities and stockholders' equity 1,300,000

Fixed assets 430,000

Total assets $1,300,000  

The company expects sales of $400,000 for July. The company has observed that 25% of its sales is for cash and that the remaining 75% is collected in the following month. The company plans to purchase $345,000 of new clothing. Usually 70% of purchases is for cash and the remaining 30% of purchases is paid in the following month. Salaries are $135,000 per month, lease payments are $35,000 per month, and depreciation charges are $20,000 per month. The company plans to purchase a new van for $60,000 in July and sell its marketable securities for $123,000. If the company must maintain a minimum cash balance of $25,000, how much money must the company borrow in July?