Holiday Tree Farm has a cash balance of $34 and a short-term loan balance of $180 at the beginning of Q1. The net cash inflow for the first quarter is $36 and for the second quarter there is a net cash outflow of $48. All cash shortfalls are funded with short-term debt. The firm pays 2 percent of its prior quarter's ending loan balance as interest each quarter. The minimum cash balance is $20. What is the short-term loan balance at the end of Q2?

Multiple Choice

• $184.3

• $193.1

• $128.4

• $138.6

• $179.2

• Which statement is true?

  Multiple Choice

• The number of days in the cash cycle can be positive, negative, or equal to zero.

• Paying a supplier within the discount period rather than waiting until the end of the normal credit period will decrease the cash cycle.

• An increase in the inventory turnover rate must increase the cash cycle.

• The payables period must be shorter than the receivables period.

• A decrease in the accounts receivable turnover rate decreases the cash cycle.