Question

sing the preceding information, answer the following questions: (Note: Round your answers to the nearest millionth dollar.) • What is the net cash inflow that Mooney expects in the fourth quarter (Q4)? • If Mooney is beginning this year with a cash balance of $39 million and expects to maintain a minimum target cash balance of at least $16 million, what will be its likely cash balance at the end of the year (after Q4)? • What is the maximum investable funds that the firm expects to have in the next year? • What is the largest cash deficit that the firm expects to suffer in the next year? True or False: If a firm changes its credit policy and allows customers to pay in 90 days instead of 60 days, and everything else remains the same, the net cash flow in the next quarter is likely to decrease. True False

Answer 1

$20 million is expected to have cash balance at the end of the year.

$39 million is the maximum possible investment funds that company is expected to invest.

Yes it is true net cash flow is likely to decrease in the next quarter if the company allows customer to pay in 90 days instead of 60 days.