Markham Enterprises has gathered the following data to plan for its cash requirements and short-term investment opportunities for June, July, and August. All amounts are shown in thousands of dollars.

a. Prepare a scenario analysis of Markham Enterprises. The beginning balance is -$28,000 for June and the minimum required cash balance is $30,000.

b. Use the analysis prepared in part a to identify Markham’s financing needs or surplus over the three scenarios. If needed, where could the funds be obtained? What should be done with a surplus of cash?

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Total cash receipts Total cash Pessi- mistic $250 disbursements 260 June Most likely $370 310 Opti- mistic Pessi- mistic $430 $245 405 255 July Most likely $305 285 Opti- Pessi- mistic mistic $395 375 $265 280 August Most likely $335 300 Opti- mistic $412 396