Trotter Enterprises, Inc., has gathered the following data to plan for its cash requirements and short-term investment opportunities for October, November, and December. All amounts are shown in thousands of dollars.
a. Prepare a scenario analysis of Trotter's cash budget using -$20,000 as the beginning cash balance for October and a minimum required cash balance of $18,000.
b. Use the analysis prepared in part a to predict Trotter's financing needs and investment opportunities over the months of October, November, and December. Discuss how knowledge of the timing and amounts involved can aid the planningprocess.