Please given answer Accounting question Sparks Corporation has a cash balance of $18,900 on April 1. Thecompany must maintain a minimum cash balance of $15,500. DuringApril, expected cash receipts are $67,000. Cash disbursements duringthe month are expected to total $80,500. Ignoring interest payments,during April the company will need to borrow:a. $5,400b. $10,100c. $15,500d. $13,500

Step 1: Cash budget is prepared to know the cash collection from different sources and uses on cash…

Answered: Sparks Corporation has a cash balance…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter8: Budgeting

Section: Chapter Questions

Problem 18E

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Sparks Corporation has a cash balance of $14,100 on April 1. The company must maintain a minimum cash balance of $16,500. During April, expected cash receipts are $59,000. Cash disbursements during the month are expected to total $68,500. Ignoring interest payments, during April the company will need to borrow: O 11,900 O 56,600 4,600 9,500
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