Toni's Has a Net Cash Inflow,excluding Long-Term Financing Expenses,for the Quarter

question 19

Multiple Choice

Toni's has a net cash inflow,excluding long-term financing expenses,for the quarter of $418.02.The beginning cash balance is $187.40.The firm has $546 in short-term debt with a quarterly interest rate of 1.2 percent.New company policy is to maintain a minimum cash balance of $140.How much does the firm need to borrow or how much can it repay on its loan to have a zero cumulative surplus for the quarter?

• A)Borrow $458.87
• B)Borrow $276.69
• C)Repay $465.42
• D)Repay $458.87
• E)Repay $308.19

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