Cash Balance for Masson Corporation

16.2 Cash Balance for Masson Corporation. The Masson Corporation has a 60-day average collection period and wishes to maintain a $5 million minimum

work through the analysis of the company’s short term financial situation. the company will be in a negative cash situation three quarters from now.

As an adviser make recommendations to management on what actions they could take to avoid the coming financial crisis:


a.    List the options open to the company.

b.    State your recommendations

c.    Explain clearly why you are making each recommendation and,

d.    Present a revised cash budget showing what it the company’s cash outlook will be as a result of your recommendations.