5. Sparks Company has a cash balance of $7,500 on April 1 . The company must maintain a minimum cash balance of $6,000. During April, cash receipts of $48,000 are planned. 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 6. Static budgets a. must include both monetary and non-monetary items. b. are set at the beginning of the period and remain constant. c. remove any differences in cost caused by differences in volume. d. are based on the actual number of units produced or sold 7. Flexible budgets a. include both monetary and non-monetary items. b. are only prepared once a year. c. remove any differences in cost caused by differences in volume. d. remains constant throughout the budget period