$$\begin{array}{l}
\text { Sportif, Inc. }\
\begin{array} { l r l }
\text { Month } & \text { Sales } & \text { Disbursements } \
\hline \text { January } & \$ 5,000 & \$ 6,000 \
\text { February } & 6,000 & \$ 7,000 \
\text { March } & 10,000 & \$ 4,000 \
\text { April } & 10,000 & \$ 5,000 \
\text { May } & 10,000 & \$ 5,000
\end{array}
\end{array}$$
-The firm has a total financing requirement of_________for the period from January through May. (See Figure 4.1)
A) $0
B) $1,250
C) $750
D) $1,750

Question

$$\begin{array}{l}
\text { Sportif, Inc. }\
\begin{array} { l r l } 
\text { Month } & \text { Sales } & \text { Disbursements } \
\hline \text { January } & \$ 5,000 & \$ 6,000 \
\text { February } & 6,000 & \$ 7,000 \
\text { March } & 10,000 & \$ 4,000 \
\text { April } & 10,000 & \$ 5,000 \
\text { May } & 10,000 & \$ 5,000
\end{array}
\end{array}$$
-The firm has a total financing requirement of_________for the period from January through May. (See Figure 4.1)
A) $0
B) $1,250
C) $750
D) $1,750

Quizplus · Accepted Answer

The firm has a total financing requirement of $1,250 for the period from January through May. This is because the firm's total sales for the period are $41,000, and its total disbursements are $27,500. Therefore, the firm's net cash flow for the period is $13,500. However, the firm has a total financing requirement of $1,250 because it has a negative cash flow of $1,250 in January.

-The Firm Has a Total Financing Requirement Of_________for the Period