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Borrowing Amount and Managerial Accounting

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Sparks Company has a cash balance of 7,500 on April 1. The company must maintain a minimum cash balance of 6,000. During April, cash receipts of 48,000 are planned. Cash disbursements during the month are expected to total 52,000. Ignoring interest payments, during April the company will need to borrow:

6,000
4,000
3,500
2,500.

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Solution Summary

The solution provides the steps to calculate the borrowing amount.

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