A.)

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

$4,700

$7,300

$12,000

$10,000

B.)

The manufacturing overhead budget at Cardera Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 9,000 direct labor-hours will be required in January. The variable overhead rate is $8.90 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $116,100 per month, which includes depreciation of $18,260. All other fixed manufacturing overhead costs represent current cash flows.

The January cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:

$80,100

$196,200

$97,840

$177,940

C.)

The Adams Corporation, a merchandising firm, has budgeted its activity for November according to the following information:

Sales at $540,000, all for cash.

Merchandise inventory on October 31 was $245,000.

The cash balance November 1 was $27,000.

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

Budgeted depreciation for November is $43,000.

The planned merchandise inventory on November 30 is $275,000.

The cost of goods sold is 70% of the selling price.

All purchases are paid for in cash.

There is no interest expense or income tax expense.

The budgeted cash receipts for November are:

$405,000

$540,000

$135,000

$583,000