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Problem 1: Brown Company has a cash balance of $6,000 and an existing bank loan of $15,000 on April 1. The company must maintain a minimum cash balance of $6,000. During April expected cash receipts are $55,000. Expected cash disbursements during the month total $52,000. During April the company will can repay:
Multiple Choice
Option 1: $4,000.
Option 2: $2,000.
Option 3: $6,000.
Option 4: $3,000.
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