Your company collected $304.00 million and spent $377.00 million this month. If previous month's cash position (cumulative cash) is $12.23 million and your company target cash position is $20.00 million. What's your company's cash surplus/shortage at the end of this month, with positive number indicates a surplus and negative number indicates a shortage? The answer should be in millions of dollars
Your company collected $304.00 million and spent $377.00 million this month. If previous month's cash position (cumulative cash) is $12.23 million and your company target cash position is $20.00 million. What's your company's cash surplus/shortage at the end of this month, with positive number indicates a surplus and negative number indicates a shortage? The answer should be in millions of dollars
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Your company collected $304.00 million and spent $377.00 million this month. If previous month's cash position (cumulative cash) is $12.23 million and your company target cash position is $20.00 million. What's your company's cash surplus/shortage at the end of this month, with positive number indicates a surplus and negative number indicates a shortage?
The answer should be in millions of dollars
Expert Solution
Step 1
The cash balance at the end of the month is a function of collections and disbursements made during the month.
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