Solution-What type of cash balance portland pay more

What type of cash balance portland pay more attention

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A (a.compensating, b. precautionary, c. transactions, d. speculative) cash balance is held to take care of the firm's day-to-day operations, such as paying wages and purchasing supplies.

Consider the following case of Portland Fabricators Inc.:

Imagine that Portland Fabricators Inc. is a manufacturing company. In the past, Portland Enterprises has suffered from poor cash management. In particular, situations arose in which the firm did not have the necessary cash on hand to pay its suppliers, resulting in serious penalties for late payment. The firm was not in financial distress; it merely hadn't managed its cash flow properly to have the required funds on hand.

Question 1: What type of cash balance should Portland pay more attention to in order to avoid these problems?

Option 1: Speculative

Option 2: Transactions

Option 3: Compensating

Option 4: Precautionary

Reference no: EM132518256

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What type of cash balance portland pay more attention

Reference no: EM132518256

Reference no: EM132518256

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