Question $1(1$ point$)$

The cash budget for a company is the forecast of the cash inflows and outflows on a quarterly or monthly

basis.

True

False

Question $2(1$ point$)$

The first step in short$-$term financial planning is forecasting the company's future cash flows to determine

whether and when the firm has a cash surplus or deficit, and whether the cash needs are temporary or

permanent.

True

False

Question $3(1$ point$)$

In the third quarter of $2015,$ Springfield Snowboards projects an ending cash balance

of $-$$$731,000.$ However, because they want to maintain a minimum cash balance of

$$500,000,$ the project has an end$-$of$-$period cash deficit of $-$$$1,231,000.$

True

False

Question $4(1$ point$)$

When creating its short$-$term financial plan, if Springfield Snowboards had used its excess cash from the

first quarter of $2015$ to pay down its debt, the company would have had the following deficit at the end of the

second quarter of $2015.$

$-$$$447,000$

$-$$$947,000$

$-$$$1,316,000$

$-$$$1,447\mathrm{.}000$

Question $5(1$ point$)$

When creating their short$-$term financial plan, if Springfield Snowboards' managers had used a bank loan

charging $8\%$ APR compounded quarterly to finance their third$-$quarter deficit, what would be their ending

cash balance at the end of the fourth quarter of $2015?$

$$2,634,000$

$$2,464,000$

$$2,658,000$

$$2,664,000$