The Corner Store has a beginning cash balance for the quarter of $1,240. The store has a policy of maintaining a minimum cash balance of $1,000 and is willing to borrow funds as needed to maintain
That balance. How much will the store have to borrow if the net cash ﬂow for the quarter is - $370?

Question

Quizplus · Accepted Answer

The store needs to maintain a minimum cash balance of $1,000. The net cash flow for the quarter is -$370, which means the store has a cash shortage of $370. To maintain the minimum cash balance, the store needs to borrow $370.

The Corner Store Has a Beginning Cash Balance for the Quarter