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

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 $18,900 on April 1. The
company must maintain a minimum cash balance of $15,500. During
April, expected cash receipts are $67,000. Cash disbursements during
the month are expected to total $80,500. Ignoring interest payments,
during April the company will need to borrow:
a. $5,400
b. $10,100
c. $15,500
d. $13,500
Transcribed Image Text:Sparks Corporation has a cash balance of $18,900 on April 1. The company must maintain a minimum cash balance of $15,500. During April, expected cash receipts are $67,000. Cash disbursements during the month are expected to total $80,500. Ignoring interest payments, during April the company will need to borrow: a. $5,400 b. $10,100 c. $15,500 d. $13,500
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