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.