Explain how each of the following factors would probably affect a firm’starget cash balance if all other factors were held constant.a. The firm institutes a new billing procedure that better synchronizes itscash inflows and outflows.b. The firm develops a new sales forecasting technique that improves itsforecasts.

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter23: Other Topics In Working Capital Management
Section: Chapter Questions
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Explain how each of the following factors would probably affect a firm’s
target cash balance if all other factors were held constant.
a. The firm institutes a new billing procedure that better synchronizes its
cash inflows and outflows.
b. The firm develops a new sales forecasting technique that improves its
forecasts.

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