What is the optimum cash balance? 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?

Given, Opportunity cost is 12% Fixed cost per transaction is P40 Annual cash disbursement is…

Wäits tố đếtc ancial manager of Sarap Corporation cash outlays to be spent for the next period. He asked the help and the latter provided a cash budget for the next year. computations, the company would be incurring cash expenses nonth. The financial manager has estimated a cost of P40 per on-cash asset is converted to cash. The firm's opportunity cost

Wäits tố đếtc ancial manager of Sarap Corporation cash outlays to be spent for the next period. He asked the help and the latter provided a cash budget for the next year. computations, the company would be incurring cash expenses nonth. The financial manager has estimated a cost of P40 per on-cash asset is converted to cash. The firm's opportunity cost

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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