Toni's Has a Net Cash Inflow for the Quarter of $387.50.The

question 5

Multiple Choice

Toni's has a net cash inflow for the quarter of $387.50.The beginning cash balance is $211.21.The firm has $522 in short-term debt with a quarterly interest rate of 1.8 percent.Company policy is to maintain a minimum cash balance of $200.How much does the firm need to borrow or how much can it repay on its loan to have a zero cumulative surplus for the quarter?

• A)Borrow $187.31
• B)Borrow $176.69
• C)Repay $276.31
• D)Repay $389.31
• E)Repay $187.69

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Definitions:

Encumbrances

Claims, liens, charges, or restrictions on property that may affect its value, use, or transferability.

Acquired

Obtained or gained possession of something, typically through purchase or transaction.

Zoning Ordinances

Local laws that define how property in specific geographic zones can be used, affecting buildings, structures, and land use.

Variance

A measure of dispersion in statistics, showing how much data points differ from the mean; or an exemption granted from a zoning law.