Northwest Outdoor Store will have cash receipts of $83,000 in December and cash disbursements of $78,000 for this month.If its beginning cash is $3,000 and its desired reserve is $15,000,what will its excess be for December?

Question

Quizplus · Accepted Answer

The cash balance at the end of December will be the beginning cash ($3,000) plus cash receipts ($83,000) minus cash disbursements ($78,000), totaling $8,000. Since the desired reserve is $15,000, there is a shortfall of $7,000, not an excess.

Northwest Outdoor Store Will Have Cash Receipts of $83,000 in December