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    Short Term Debt and Resolving Credit Line

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    In order to find out how much cash is available to pay down short term debt, such as a revolving credit line, you must take:

    1. Cash inflows from operations + Cash outflows for investments + Financing cash flows + beginning cash balance
    2. Beginning cash balance + pre-debt cash flows -" Min. cash balance-" Required payments of LT and other debt
    3. Beginning cash balance + cash inflows from operations - Min. cash balance
    4. Beginning cash balance + cash inflows from operations + Cash outflows for investments - Min. cash balance

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    https://brainmass.com/business/accounts-receivable-management/short-term-debt-resolving-credit-line-543666

    Solution Preview

    4. Beginning cash balance + cash inflows from operations + Cash outflows for investments - Min. cash balance

    We'd take the beginning cash balance ...

    Solution Summary

    This solution explains the correct method to determine how much cash is available to pay down short term debt.

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