Baxter Trucking has a net cash inflow for the quarter of $38 including interest,a beginning cash balance of $22,and a beginning loan balance of $45.Company policy is to maintain a minimum cash balance of $20.What is the minimum amount the firm must borrow or can repay to end the month with a zero cumulative surplus?
A)Borrow $4
B)Borrow $9
C)Repay $36
D)Repay $422
E)Repay $40

Question

Quizplus · Accepted Answer

The Answer of Baxter Trucking has a net cash inflow for the quarter of $38 including interest,a beginning cash balance of $22,and a beginning loan balance of $45.Company policy is to maintain a minimum cash balance of $20.What is the minimum amount the firm must borrow or can repay to end the month with a zero cumulative surplus?
A)Borrow $4
B)Borrow $9
C)Repay $36
D)Repay $422
E)Repay $40

Baxter Trucking Has a Net Cash Inflow for the Quarter