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