Question

Hello, I need help with the question 6. I don't understand what is asking. I have provided my work and I hope I can follow along with your step by step guidance. Thank you!

WHAT-IF ANALYSIS 6. Wilson initially invested $9,000 in the business. Could he have invested less? How little could he have invested initially and never have his cash balance go below zero? To help different amounts in cell B8 to help determine an answer. When you have determined an answer this question, move to column J and analyze the information provided. Then enter answer, use the File Print command to print the range A1 to J21 all on one page. Explain below how you derived your answer.

Answer 1

There is nothing you need to calculate answer this question.

All they are asking is to

i. analyze Column J (Running cash balance) to find the following

• Could Wilson have invested less?
• How little he should invest so that his running cash balance never falls below zero?

And,

ii. Print the rage A1:J22.

### Answer You need to submit ###

### Start ###

Analysis of running cash balance:

By observing the cash balances after each transaction, the lowest amount of cash balance is $5,920

i.e., there is always idle cash of at least $5,920.

This means that Wilson could have invested less so that there is no idle cash in his business and he can use that cash somewhere else instead of keeping it idle here.

The minimum amount wilson could invest is $5,920 so that his running cash balance can never go below.

### End ###

.

(To verify this, if enter any amount below $5,920 in B8, the minimum amount in column J becomes negative which is unwanted. Hence, the minimum investment needed is $5,920)

Aftere entering $5,920 in B8 cell, Just select the cells starting from A1 to J21 and click Ctrl+P to print the result in single page.

Get back to me through comments if you are still confused :)