1. Sparks Corporation has a cash balance of $14,700 as of April 1. The business must maintain a minimum cash balance of $12,000. During April, the expected cash receipts are $60,000. Cash disbursements during the month are expected to total $70,000. Ignoring interest payments, during April, how much amount  the company will need to borrow?

2. Adams Corporation, a trading company, has budgeted its activity for November based on the following information:

• Sales to $540,000, all in cash.

• Merchandise inventory as of October 31 was $245,000.

• The cash balance on November 1 was $27,000.

• Selling and administrative expenses are budgeted at $87,000 for November and are paid in cash.

• The budgeted depreciation for November is $43,000.

• Planned merchandise inventory on November 30 is $275,000.

• The cost of goods sold is 70% of the sale price.

• All purchases are paid for in cash.

• There is no interest expense or income tax expense.

What are the budgeted cash receipts for November?

Answer rating: 100% (QA)

1 The company must maintain a minimum cash balance of 12000 but the expected cash disbursements for ... View the full answer