SHOW YOUR SOLUTION ON GOOD ACCOUNTING FORM 3. The financial manager of Sarap Corporation wants to determine the amount ofcash outlays to be spent for the next period. He asked the help of the accountantand the latter provided a cash budget for the next year. According to thecomputations, the company would be incurring cash expenses of P6,612,500 permonth. The financial manager has estimated a cost of P40 per transaction in casenon-cash asset is converted to cash. The firm's opportunity cost ratio is 12%. Whatis the optimum cash balance?

Optimum Cash Balance: The optimum cash balance is the cash balance that is required by the…

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?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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