Your fiRm Has a Net Cash Inflow for the Quarter

question 53

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:

Workforce

The group of individuals engaged in or available for work, either in a country or a specific company.

Collectively Liable

A situation where all members of a group are equally responsible for the group's obligations or debts.

Industries

Sectors or categories of business activity focused on the production or delivery of goods and services.

Employer-Provided

Services or benefits offered to employees directly by their employer, such as health insurance, retirement plans, or transportation allowances.