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. $4,000
B. $8,000
C. $2,000
D. $6,000
Answer: D
You might also like to view...
If someone feels empowered enough to see that his or her actions can make a real difference in an organization, they are feeling which psychological empowerment belief?
a. Meaningfulness b. Self-determination c. Competence d. Impact
Which of the following is an incremental cash flow?
A. Market research costs B. Change in working capital C. Sunk costs D. Project site analysis costs E. Externalities
From the standpoint of the insured, deductibles in insurance contracts are a form of:
A) risk transfer B) loss control C) risk retention D) risk avoidance
A problem in which you must calculate the value now of a series of equal amounts to be received for some specified number of periods in the future is a:
A. present value of an annuity problem. B. present value of a single amount problem. C. future value of an annuity problem. D. future value of a single amount problem.