A Firm Has a Minimum Desired Cash Balance of $120,000

Multiple Choice

A firm has a minimum desired cash balance of $120,000. Any cash shortfalls will be made up with short-term financing. The net cash flow for January is $80,000 and the beginning balance for that month is $15,000: short-term financing requirements that month will be:

A) -$120,000
B) $25,000
C) $215,000
D) $200,000