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100,000
A) Determine whether Itsar Products will have a cash need during the next year.
B) If Itsar Products has a cash need, indicate the month when the need will begin and determine the month and the amount when the maximum need occurs.
I believe the answer to Part A is: Yes Itsar Products will have a cash need during the year.
Part B is what trips me up. The cash need begins in February, they are short 20,000 and since they wish to keep 10,000 on hand they will need 30,000. The biggest need would be in May when they need 60,000 to keep them where they wish to be.
However that seems too simple so I’m hoping someone can help guide me in the direction I’m probably meant to go.
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