微信扫一扫
实时资讯全掌握
Tidwell Corporation sells a single product for $20 per unit. All sales are on account, with 60% collected in the month of sale and 40% collected in the following month. A partial schedule of cash collections for January through March of the coming year reveals the following receipts for the period:  Inventories are maintained at 30% of the following month’s sales. Tidwell desires to keep a minimum cash balance of $15,000. Total payments in January are expected to be $106,500, which excludes $12,000 of depreciation expense. Any required borrowings are in multiples of $1,000. The December 31 balance sheet for the preceding year revealed a cash balance of $24,900.Ignoring income taxes, the financing Tidwell will need in January to maintain the firm’s minimum cash balance isA. $8,000 B. $10,600 C. $11,000 D. $23,000 |