Nire Ltd has determined that its short-term investments are yielding 5% annually and the cost is $25
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Question:
total assets amount to $150,000, the variance of its daily cash flows is estimated to be $43,590 and the firm wants to keep a minimum 10% of total assets in a cash account.
a) What is the firm's target cash balance?
RESPONSE
b) What is the firm's upper limit for the cash account?
Related Book For
Intermediate Accounting
ISBN: 978-0132162302
1st edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
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