XYZ Ltd. cash budget forewarns of a short-term surplus. Which of the following would be the appropriate action to be taken in such a situation? Repay long term loans Increase Debtors and stock to boost sales All of the above Purchase new fixed asset None of the above

XYZ Ltd. cash budget forewarns of a short-term surplus. Which of the following would be the appropriate action to be taken in such a situation? Repay long term loans Increase Debtors and stock to boost sales All of the above Purchase new fixed asset None of the above

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter12: Corporate Valuation And Financial Planning

Section: Chapter Questions

Problem 6Q: Suppose a firm makes the following policy changes listed. If a change means that external,...

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Concept explainers

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.

Question

XYZ Ltd. cash budget forewarns of a short-term surplus. Which of the following would be the appropriate action to be taken in such a
situation?
Repay long term loans
Increase Debtors and stock to boost sales
All of the above
Purchase new fixed asset
None of the above
O O
O O C

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