A small company specializing in the sale and installation of swimming pools was profitable but attention to management of its worker for example, never prepared or used a To be sure that money was available as needed, the firm kept a minimum checking account. At times, this acco it totaled $43,000 at one time. The o this approach to cash management w small company because it eliminated work associated with cash budgeting. bled the firm to pay its bills in a time ale and installation devoted very little g capital. It had, cash budget. e for payments of $25,000 in a unit grew larger; wner felt that orked well for the all of the paper-Moreover, timely manner.
Question 1 What are the advantaaps and weaknesses of the minimum-cash-balance practice?
Question 2 There is a saying “If it a fix it.” In view of the firm's present su bills promptly, should it be encourage budget? Be prepared to support your