A difference between operations and projects is that operations end when their objectives have been reached, whereas projects do
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Answer:
Explanation:
<u>First we do Q1</u>
beginning + receipts - disbursement
then we compare the this balance with the minimun.
in this case this open the needs for financing
We end with the minimun cash balance of 10,000
This will be the beginning for Q2
<u>Now, we do Q2</u>
same process
beginning + receipts - disbursement
but this time we also calculate the interest
35,000 x 3% = 1,050
which also decrease the cash before financing.
We now compare with the minimun balance and paid the finance
We end the Q2 with a balance of 94,950
Q3 and Q4 follow the same procedure,
beginning + receipts - disbursement
compare with minimun
if below add financing, if not, don't.