If Durango desires an $8,000 ending cash balance, the total amount they need to borrow is $7500.
First step
Cash balance=Beginning cash balance+ Cash receipts- total cash disbursements
Cash balance= 4,000+110,000-112,500
Cash balance= 1,500
Second step
Total amount to borrow=Ending cash balance-Cash balance+Increment
Total amount to borrow=$8000-$1500+$1000
Total amount to borrow=$7500
Therefore the total amount they need to borrow is $7500.
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