Answered step by step
Verified Expert Solution
Question
1 Approved Answer
(C) Kinta company has the following cash receipts and disbursements for the next eight months. The company wants to keep a minimum RM15,000 cash level
(C) Kinta company has the following cash receipts and disbursements for the next eight months. The company wants to keep a minimum RM15,000 cash level over the next eight months, and it has the beginning cash balance in January of RM15,000. Jan Feb Mar Apr June July 80,000 160,000 180,000 130,000 135,000 160,000 May 150,000 Aug 150,000 Cash Receipts Cash disbursement 120,000 100,000 150,000 190,000 150,000 125,000 150,000 140,000 (iii) Can the company pay off the cash needed for the 8-month period? (3 marks) (iv) If the minimum cash balance is kept at RM15,000 from January to March, then it is increased to RM18,000 from April to June and reach RM20,000 in July and August. What can you tell about the cash need of the company? (6 marks)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started