Question

A company is preparing its cash budget. Its cash balance on January 1 is $290,000 and it has a minimum cash requirement of $340,000. The following data has been provided: Cash receipts January $1,061,200 984,500 February $1,182,400 1,210,000 March $1,091,700 1,075,000 Cash payments What is the amount of cash excess or deficiency (after considering the minimum cash balance required) for March? a. excess of $15,800 Ob. deficiency of $60,000 Oc. excess of $25,300 Od. excess of $214,200

Answer 1

Answer

--Correct Answer = Option 'a' Excess of $ 15,800

	Jan	Feb	Mar
Beg Balance	$290,000	$366,700	$339,100
Receipts	$1,061,200	$1,182,400	$1,091,700
Payments	($984,500)	($1,210,000)	($1,075,000)
End bal	$366,700	$339,100	$355,800
		Minimum Balance required	$340,000
		Excess (Deficiency) of Cash	$15,800 Answer