Sparks Corporation has a cash balance of $18,000 on April 1. The company must maintain a minimum cash balance of $10,000. During April, expected cash receipts are $98,000. Cash disbursements during the month are expected to total $112,000. Ignoring interest payments, during April the company will need to borrow:

A) $8,000
B) $2,000
C) $6,000
D) $4,000

To determine how much Sparks Corporation will need to borrow, we need to calculate their ending cash balance for the month of April.

Beginning Cash Balance: $18,000
Expected Cash Receipts: $98,000
Total Cash Available: $116,000

Expected Cash Disbursements: $112,000

Total Cash Needed: $10,000 (minimum balance) + $112,000 (disbursements) = $122,000

Ending Balance: $116,000 - $122,000 = -$6,000

Since the ending balance is negative, Sparks Corporation will need to borrow enough money to bring their ending balance up to the required minimum of $10,000.

Amount to Borrow: $10,000 - (-$6,000) = $16,000

Therefore, the best choice is C) $6,000, since it is the closest to the calculated answer of $16,000.