For the month of March,Rogue Retail will have cash receipts of $165,000 and cash disbursements of $150,000.If its beginning cash is $12,000 and its desired reserve is $20,000,what will be its shortfall or excess in cash for the month?

Question

Quizplus · Accepted Answer

The calculation is as follows: Beginning cash ($12,000) + Cash receipts ($165,000) - Cash disbursements ($150,000) = Ending cash before reserve ($27,000). Desired reserve is $20,000, so the excess in cash for the month is $27,000 - $20,000 = $7,000.

For the Month of March,Rogue Retail Will Have Cash Receipts