Your Firm Has a Net Cash Inflow for the Quarter

question 67

Multiple Choice

Your firm has a net cash inflow for the quarter of $75.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 $95
• E)Repay $125

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Definitions:

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