The Elusive Cash Balance- Applications in Financial Management.
1. Should Patrick prepare a quarterly or a monthly cash budget for Hunt Distributing Inc.? Explain why.
2. Based on your calculations, which months seem to be the most vulnerable to cash deficits and which ones have the greatest surplus funds?
3. Assuming borrowed funds cost 10% per year and excess funds can be invested at 6% per year, prepare an annual financial plan for Hunt Distributing, Inc.
1. Prepare a suitable cash budget for Hunt Distributing Inc. Build in minimum and maximum cash balances as requested by Donald. Assume that the cash position at the start of the budgeting period is zero.