A Firm Has a Minimum Desired Cash Balance of $10,000

Multiple Choice

A firm has a minimum desired cash balance of $10,000. Any cash shortfalls will be made up with short-term financing. The net cash flow for January is $3,000 and the beginning balance for that month is $5,000: The cash balance for the beginning of February will be:

A) -$2,000
B) $10,000
C) $3,000
D) $18,000