The beginning cash balance of a store is P120,000. The top management applies the control limit model to manage its stores cash balance. Its lower limit, optimal return point and upper limit are P70,000, P100,000 and P160,000 respectively. The cash flows over the past four days excluding interventions based on the model were P30,000, P40,000, (P30,000) and (P35,000). How much cash would be requested/(invested) by the entity?

Answer rating: 100% (QA)

I No intervention is required as neither lower limit nor upper limit has been ... View the full answer