Miller-orr cash management approach
Question:
A company uses a Miller-Orr cash management approach with a lower limit of $50,000, an upper limit of $130,000, and a target balance of $75,000. Explain what each of these points represents; then explain how the system will work.
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At the same time accounts payable will increase by $50,000, accruals by $10,000, and long-term debt by $100.000. The change in networking capital is
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A company uses a Miller-Orr cash management approach with a lower limit of $50,000, an upper limit of $130,000, and a target balance of $75,000.
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