Honu Co uses Miller-Orr to control its cash balances. It has a lower limit of $5,000 and a spread of $18,000. Which of the following statements are consistent with the use of Miller-Orr? 1 When cash balances rise to $18,000 Honu Co buys $8,666 of short-term securities 2 When cash balances fall to $5,000 Honu Co sells $6,000 of short-term securities