Sparks Corporation Has a Cash Balance of $7,500 on April

Multiple Choice

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

A) $3,500
B) $2,500
C) $6,000
D) $4,000