Big Bear Ski Lodge's cash budget for the month of March,2012,shows a negative amount.Due to the fact that the months of January and February were quite lucrative and showed positive amounts,the finance manager will not borrow any money on the short-term to cover for March's deficit.

Question

Quizplus · Accepted Answer

The fact that January and February were profitable does not necessarily mean that the company should not borrow money to cover a loss in March. The finance manager should consider all options, including short-term borrowing, to ensure the company is able to operate smoothly and meet its financial obligations.

Big Bear Ski Lodge's Cash Budget for the Month of March,2012,shows