The Timberline fiRm Expects a Total Need of €12,500 Over

question 94

Multiple Choice

The Timberline firm expects a total need of €12,500 over the next 3 months.They have a beginning cash balance of €1,500, and cash is replenished when it hits zero.The fixed cost of selling
Securities to replenish cash balances is €3.50.The interest rate on marketable securities is 8% per
Annum.There is a constant rate of cash disbursement and no cash receipts during the month.
Based on the firm's current practice, how many times during the next 3 months will the cash balance
Be replenished?

• A)3.33 times
• B)4.42 times
• C)8.33 times
• D)13.35 times
• E)None of the above.

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Definitions:

Somatic

Relating to or affecting the body, distinct from the mind or emotions.

Nucleus Accumbens

A brain region involved in the reward circuit, associated with pleasure, reinforcement learning, addiction, and fear.

Amygdala

A section of the brain's limbic system involved in emotion, survival instincts, and memory.

Frontal Cortex

The front part of the cerebral cortex involved in decision making, problem-solving, control of purposeful behaviors, consciousness, and emotional responses.