Your Firm Has a Net Cash Inflow for the Quarter

question 259

Multiple Choice

Your firm has a net cash inflow for the quarter of $60. The beginning cash balance is $35. Company policy is to maintain a minimum cash balance of $15 and borrow only the amount that is necessary to maintain that balance. How much does your firm need to borrow or how much can it repay on its loans to have a zero cumulative surplus?

• A) Borrow $40.
• B) Borrow $10.
• C) Repay $10.
• D) Repay $40.
• E) Repay $80.

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Definitions:

Self-Protective Mechanisms

Psychological strategies used to defend oneself from perceived threats to self-esteem or well-being; synonymous with defense mechanisms.

Self-analysis

The practice of examining one's own thoughts, feelings, and behaviors in order to gain insight or achieve personal growth.

Free Association

A psychoanalytic technique in which the patient is asked to freely share thoughts, words, and anything else that comes to mind, without censorship.

Dream Analysis

The examination of the content and significance of dreams to understand underlying emotions, unconscious desires, or psychological states.