Sparks Corporation has a cash balance of $16,500 on April 1. The company must ma

Question

Sparks Corporation has a cash balance of $16,500 on April 1. The company must maintain a minimum cash balance of $13,500. During April, expected cash receipts are $63,000. Cash disbursements during the month are expected to total $74,500. Ignoring interest payments, during April the company will need to borrow:

$5,000

$8,500

$13,500

$11,500

Sparks Corporation has a cash balance of $16,500 on April 1. The company must maintain a minimum cash balance of $13,500. During April, expected cash receipts are $63,000. Cash disbursements during the month are expected to total $74,500. Ignoring interest payments, during April the company will need to borrow:

Explanation / Answer

$8,500 Statement showing cash Budget Particulars Amount Opening Cash Balance          16,500.00 Cash Receipts          63,000.00 Cash Disbursements        (74,500.00) Cash Balance Before borrowing             5,000.00 Desired Cash Balance          13,500.00 Amount to be borrowed(13500-5000)             8,500.00

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.