If projected net cash flow for November is ($10,000); beginning cash balance is $4,000; minimum cash balance is $3,000; beginning loan balance is $8,000, what will be the cumulative loan balance at the end of November?
A) $14,000
B) $5,000
C) $17,000
D) $22,000

Question

Quizplus · Accepted Answer

The projected net cash flow is negative $10,000, and the beginning cash balance is $4,000, resulting in a cash deficit of $6,000. To maintain the minimum cash balance of $3,000, an additional $9,000 is needed ($6,000 deficit + $3,000 minimum balance). Adding this to the beginning loan balance of $8,000 results in a cumulative loan balance of $17,000.

If Projected Net Cash Flow for November Is ($10,000); Beginning