Question: Basic Sound's management team likes to keep at least $30,000 on hand at end of each quarter to ensure it has enough operating cash

Basic Sound's management team likes to keep at least $30,000 on hand at end of each quarter to ensure it has enough operating cash for the next quarter. Cash in excess of $30,000 is used to repay prior borrowings. Basic Sound began the year with $30,000 cash on hand. Management has decided to make quarterly income tax and interest payments.
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