Question
AlRowad Cement Works has a beginning cash balance for the quarter of SR 874. Ms. Noura, the firm's president, requires that a minimum cash balance
AlRowad Cement Works has a beginning cash balance for the quarter of SR 874. Ms. Noura, the firm's president, requires that a minimum cash balance of SR 1000 be maintained and requires that borrowing be used to maintain that balance. If funds have been borrowed, then she requires that those loans be repaid as soon as excess funds are available. Currently, the firm has a loan outstanding of SR 1,260. How much will the firm borrow or repay this quarter if the quarterly receipts are SR 4,918 and the quarterly disbursements are SR 3,774?
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Entrepreneurial Finance
Authors: J . chris leach, Ronald w. melicher
4th edition
538478152, 978-0538478151
