Answered: A firm with $1,000,000 in cash holdings…

A firm with $1,000,000 in cash holdings and an ann DCH of 250 days for the next fiscal year. Assuming that CGS will remain unchanged in the up

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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Question

A firm with $1,000,000 in cash holdings and an annual CGS of $2,500,000 has targeted a
DCH of 250 days for the next fiscal year.
Assuming that CGS will remain unchanged in the upcoming year, what change in cash
holdings would be required?
A in cash holdings = $_

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