brown company has a cash balance of 6000 and an existing bank loan of 200 on April 1

Management Mar 12, 2021

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

Expert Solution

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.

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