Blue Corporation requires a P150,000 minimum cash balance on its:checking account. Based on the control limit model, its spread should be P120,000. If as of the end of the day, the cash balance is P30,000, it should infuse cash or (invest in marketable securities) amounting to : a. 160,000 b. 190,000 c. 240,000 d. 120,000
Blue Corporation requires a P150,000 minimum cash balance on its:checking account. Based on the control limit model, its spread should be P120,000. If as of the end of the day, the cash balance is P30,000, it should infuse cash or (invest in marketable securities) amounting to : a. 160,000 b. 190,000 c. 240,000 d. 120,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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Blue Corporation requires a P150,000
minimum cash balance on its:checking
account. Based on the control limit model, its
spread should be P120,000. If as of the end of
the day, the cash balance is P30,000, it should
infuse cash or (invest in marketable
securities) amounting to :
a. 160,000
b. 190,000
c. 240,000
d. 120,000
Expert Solution
Step 1
Solution
Given
|
Minimum cash balance required |
150000 |
|
Spread as per control limit model |
120000 |
|
Cash balance at the end of the day |
30000 |
|
Cash to be infused |
? |
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