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    Excess Cash Balance

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    In the month of August, a firm had total cash receipts of $10,000, total cash disbursements of $8,000, depreciation expense of $1,000, a minimum cash balance of $3,000, and a beginning cash balance of $500. The excess cash balance (required financing) for August is _________

    a) required total financing of $500,
    b) excess cash balance of $5,500,
    c) excess cash balance of $500, or
    d) required total financing of $2,500.

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    Solution Preview

    In the month of August, a firm had total cash receipts of $10,000, total cash disbursements of $8,000, depreciation expense of $1,000, a minimum cash balance of $3,000, and a beginning cash balance of ...

    Solution Summary

    The solution provides a step-by-step answer to the excess cash balance.

    $2.19

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