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The following table includes quarterly working capital levels for your firm for the next year. Quarter ($000) 1 2 3 4 Cash 100 100 100

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The following table includes quarterly working capital levels for your firm for the next year. Quarter ($000) 1 2 3 4 Cash 100 100 100 100 Accounts Receivable 200 100 100 600 Inventory 200 500 900 50 Accounts Payable 100 100 100 100 If you hold only $100(,000) in cash at any time, what is your maximum short-term borrowing and when? (Note that $100,000 is expressed as 100 in the table.) Answer: Calculate the short-term financing needs below: (Round to the nearest integer.) Quarter ($000) Q1 Q3 Q4 Q2 Temporary needs Answer: Select the correct statement from below (Answer "A", "B". "C" or "D") A. The maximum short-term borrowing is $600.000 during Q1. B. The maximum short-term borrowing is $600,000 during Q2. C. The maximum short-term borrowing is $600,000 during Q3. D. The maximum short-term borrowing is $600,000 during 24

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