3. manager orporation an cash outlays to be spent for the next period. He asked the help of the ace and the latter provided a cash budget for the next year. According computations, the company would be incurring cash expenses of P6,612, month. The financial manager has estimated a cost of P40 per transaction non-cash asset is converted to cash. The firm's opportunity cost ratio is 129 is the optimum cash balance?
3. manager orporation an cash outlays to be spent for the next period. He asked the help of the ace and the latter provided a cash budget for the next year. According computations, the company would be incurring cash expenses of P6,612, month. The financial manager has estimated a cost of P40 per transaction non-cash asset is converted to cash. The firm's opportunity cost ratio is 129 is the optimum cash balance?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:3. The financial manager of Sarap Corporation wants to determine the amount of
cash outlays to be spent for the next period. He asked the help of the accountant
and the latter provided a cash budget for the next year. According to the
computations, the company would be incurring cash expenses of P6,612,500 per
month. The financial manager has estimated a cost of P40 per transaction in case
non-cash asset is converted to cash. The firm's opportunity cost ratio is 12%. What
is the optimum cash balance?
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