Your Firm Has a Net Cash Inflow for the Quarter

question 81

Multiple Choice

Your firm has a net cash inflow for the quarter of -$30 (negative) . The beginning cash balance is $15. Company policy is to maintain a minimum cash balance of $5 and borrow only the amount that is necessary to maintain that balance. How much does your firm need to borrow to have a zero cumulative surplus?

• A) $10
• B) $15
• C) $20
• D) $25
• E) $30

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Definitions:

C

In programming, C is a high-level and general-purpose programming language that is widely used for system and application software, device drivers, and embedded firmware.

Disposable Income

Income available to an individual or household after deducting income taxes and other mandatory charges.

Inventory Investment

The purchase of goods and materials for the purpose of storing them for future sale or use in production.

Level of Inventory

Indicates the quantity of goods or materials a company has in stock at a given time, a critical factor in supply chain and operations management.