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brown company has a cash balance of 6000 and an existing bank loan of 200 on April 1. The company must maintain a minimum cash balance of $6000. During April expected cash receipts are $55,00. Expected cash disbrutments during the month total $52,00. During April the company will repay
Computation of Amount Company will Repay: | |
(a) Op. Cash Balance | $6,000.00 |
(b) Cash Receipt | $55,000.00 |
(c) Cash Disbursement | -$52,000.00 |
(d) Estimated Closing Balance (a + b - c) | $9,000.00 |
(e) Minimum Required Cash Balance | $6,000.00 |
(f) Repayment (d - e) | $3,000.00 |
So, the amount company will repay is $3,000.