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  3. financial models must calculate the cash available

Financial models must calculate the cash available for a revolving credit line (revolver). This determines...

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Accounting

Financial models must calculate the cash available for a revolving credit line (revolver). This determines whether the company needs to borrow from the revolver or whether it can afford to repay any outstanding balances on the revolver. Which of the following statements best describes the company's need for or ability to repay its revolving line of credit (revolver) for the 6-month period shown below? Figures in USD thousands Jan Feb Q1 Mar Apr May Q2 Jun Available Cash Beginning Cash Balance 2,600 2,075 1,614 2,000 5,000 2,326 Cash from Operations (525) (461) (524) 1,723 (487) (525) Cash from Investing 2,075 1,614 (2,000) (910) (5,000) (1,277) 4,513 1,801 Cash for Revolving Credit Line The revolver balance will not be completely paid off until June. The company can partially repay the revolver balance in April. The company will need to borrow from its revolver starting in April. The company will need to borrow from its revolver starting in March

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