Question
[Short-Term Financial Planning] The Itsar Products Company has made the following monthly esti- mates of cash receipts and cash disbursements when preparing cash budgets for
[Short-Term Financial Planning] The Itsar Products Company has made the following monthly esti- mates of cash receipts and cash disbursements when preparing cash budgets for the next 12 months. Itsar Products has beginning cash on hand of $10,000 and wants to maintain this minimum cash level throughout the next year.
A. Determine whether Itsar Products will have a cash need during the next year.
B. If Itsar Products has a cash need, indicate the month when the need will begin and determine the month and amount when the maximum need will occur.
C. Determine whether the cash need (if any) can be repaid within the next year.
Please use mathematic way for part A to show works. Thanks!
MONTH January February March April May June July August September October November December CASH RECEIPTS $100,000 $90,000 $80,000 $100,000 $120,000 $160,000 $200,000 $250,000 $250,000 $200,000 $140,000 $100,000 CASH DISBURSEMENTS $100,000 $110,000 $110,000 $150,000 $180,000 $180,000 $180,000 $180,000 $150,000 $110,000 $100,000 $100,000Step by Step Solution
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