In October, a firm had an ending cash balance of $35,000. In November, the firm had a net cash flow of $40,000. The minimum cash balance required by the firm is $25,000. At the end of November, the firm

Question

Quizplus · Accepted Answer

The firm had an ending cash balance of $35,000 in October, and it had a net cash flow of $40,000 in November. Therefore, the total cash available at the end of November is: 
$35,000 + $40,000 = $75,000
The minimum cash balance required by the firm is $25,000, so the excess cash balance is: 
$75,000 - $25,000 = $50,000
Therefore, the firm had an excess cash balance of $50,000.

In October, a Firm Had an Ending Cash Balance of $35,000