You are reviewing your targets for short-term cash reserves next year. You wish to carry at least twenty days cash on hand. If annual budgeted cash expenses are $48,000,000, what amount of short-term cash reserves should be targeted?
You have projected depreciation expense to be $1,000,000 in the next fiscal year 3 with year-end accumulated depreciation balances being $5,000,000. If inflation in medical equipment is averaging 10 percent per year and you wish to finance only 20 percent of your replacement needs with debt, what amount of replacement reserves should you target for year-end?
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