XYZ Ltd begins with a cash balance of $600 000 and its cash outflows exceed its inflows by $100 000 each week.Calculate how long the supply of cash would last.
A)Four weeks.
B)Two weeks.
C)Six weeks.
D)Three weeks.

Question

Quizplus · Accepted Answer

With a starting cash balance of $600,000 and a weekly deficit of $100,000, the cash would last for 6 weeks ($600,000 / $100,000 per week = 6 weeks).

XYZ Ltd Begins with a Cash Balance of $600 000