Dixie's Has a Net Cash Inflow for the Quarter of -$108.The

question 71

Multiple Choice

Dixie's has a net cash inflow for the quarter of -$108.The beginning cash balance is $212.Company policy is to maintain a minimum cash balance of $75 and borrow only the amount that is necessary to maintain that balance.How much does the firm need to borrow to have a zero cumulative surplus?

• A)$0
• B)$104
• C)$179
• D)$132
• E)$29

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Definitions:

Tender

An offer to perform an obligation or to pay an amount specified in a contract.

Full Performance

The complete execution of all terms and obligations specified in a contract or agreement.

Obligation

A duty or commitment one party has to perform or refrain from performing specified actions as per a contract or legal requirement.

Novation

The act of replacing an existing obligation with a new one, transferring rights and duties from the original party to a new party.