View Policies Current Attempt in Progress Steven Garcia has been working on Sheridan Paints' cash budget for the coming year. Based on his projections for March, the beginning cash balance will be $41,700; cash collections will be $520,000; and cash disbursements will be $554,000. Sheridan Paints desires to maintain a $45,000 minimum cash balance. The company has a 12% open line of credit with its bank, which provides short-term borrowings in $500 increments. All borrowings are made at the beginning of the month, and all repayments are made at the end of the month (in $500 increments). When partial payments are made against the line of credit, accrued interest applicable to the full amount due through that date is paid along with the partial principal repayment. (a) How much will Sheridan Paints need to borrow from the bank at the beginning of March? Sheridan Paints should borrow (b) Sheridan anticipates having a positive $20,000 net cash flow from April activities. How much of the line of credit from March can be repaid? How much interest will be repaid in April? Principal to be repaid $ Interest to be repaid $