Ask Question
BusinessBusiness
23 February, 04:52

Sparks Corporation has a cash balance of $18,000 on April 1. The company must maintain a minimum cash balance of $10,000. During April, expected cash receipts are $98,000. Cash disbursements during the month are expected to total $112,000. Ignoring interest payments, during April the company will need to borrow:a.$2,000b.$4,000c.$8,000d.$6,000

+5
Answers (1)
  1. 23 February, 07:37
    0
    d.$6,000

    Explanation:

    The computation of the borrowed amount is shown below:

    As we know that

    Ending balance of cash = Beginning balance of cash + Cash receipts - Cash disbursements

    = $18,000 + $98,000 - $112,000

    = $4,000

    Now the borrowed amount is

    = Minimum cash balance - ending balance of cash

    = $10,000 - $4,000

    = $6,000

    Hence, the correct option is d.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Sparks Corporation has a cash balance of $18,000 on April 1. The company must maintain a minimum cash balance of $10,000. During April, ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Antonio is skilled at making both earrings and bracelets. Antonio has no preference between making earrings or bracelets since he earns the same amount from the two activities.
Answers (1)
If nominal GDP rises we can say that A. production has risen or prices have risen or both have risen. B. prices have risen and production remains constant. C. production has risen and prices remain constant. D.
Answers (1)
Conducting ourselves ethically and within the law of business practices
Answers (1)
A Statement of Financial Position is a formal statement presenting the three accounting elements which are?
Answers (1)
Sunland Company began the year 2022 with $121000 in its Common Stock account and a debit balance in Retained Earnings of $51800. During the year, the company earned net income of $25900, and declared and paid $8600 of dividends.
Answers (1)
New Questions in Business
Assume a firm's resources and capabilities are costly to imitate. This is because rival companies do not clearly understand the relationship between the resources and capabilities controlled by the firm.
Answers (1)
A firm produces 10 calculators that they sell for $15 each. The average variable cost for the production of 10 calculators is $13/unit. The fixed costs for this firm equal $20. What is the value of this firm's profits
Answers (1)
g The multiplier effect states that there are additional shifts in aggregate demand from fiscal policy, because it a. decreases income and thereby increases consumer spending. b. reduces investment and thereby increases consumer spending. c.
Answers (1)
Ryobi Limited sold a set of saws to Ace Hardware. The list price was $3,800. Ryobi offered a chain discount of 8/3/1. What's the net price of the saws
Answers (1)
Marcus is asked by higher management to create a document that provides a high level description of a project that has not yet been approved.
Answers (1)
Home » Business » Sparks Corporation has a cash balance of $18,000 on April 1. The company must maintain a minimum cash balance of $10,000. During April, expected cash receipts are $98,000. Cash disbursements during the month are expected to total $112,000.
Sign Up Forgot Password?