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:

Hyoid Bone

A U-shaped bone in the neck that supports the tongue and provides attachment points for neck and pharynx muscles, aiding in swallowing and speech.

Swallowing

The process by which food or liquid moves through the mouth, pharynx, and esophagus into the stomach.

Speech

The verbal means of communicating or expressing thoughts and emotions through articulated sound patterns.

Anulus Fibrosus

Fibrous material forming the outer portion of an intervertebral disk.