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Reported Question / Answer
Q.) In preparing a projected cash flow plan for the coming year, a farmer estimates that total cash outflow will exceed total cash inflow for the month of July. If the farmer has an operating loan balance:
1)
Net farm income will be higher than last year
2)
Capital expenditures should be increased in July
3)
The operating loan will likely increase during the month of July
4)
Cash will be available to reduce the operating loan in July
5)
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Answer :
3
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