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.What amount will the company need to borrow during April?

Question

Quizplus · Accepted Answer

The company starts with $9,000 and expects to receive $45,000, totaling $54,000. With disbursements of $52,000, the ending balance would be $2,000. To maintain the minimum balance of $6,000, they need to borrow $4,000.

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