ABC Company has a cash balance of $9,000 on April 1. The company must maintain a minimum cash balance of $6,000. During April expected cash receipts are $45,000. Expected cash disbursements during the month total $52,000. During April the company will need to borrow:

Question

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The company starts with $9,000, receives $45,000, and disburses $52,000, leaving $2,000. To maintain the minimum $6,000 balance, they need to borrow $4,000.

ABC Company Has a Cash Balance of $9,000 on April