NorWest Outdoor Store will have cash receipts of $47,000 in December and cash disbursements of $41,000 for this month. If its beginning cash is $7,000 and its reserves are $4,000, what will its excess be for December?

Question

Quizplus · Accepted Answer

To calculate the excess, we need to subtract the total cash disbursements from the beginning cash plus cash receipts plus reserves. 
Excess = (Beginning cash + Cash receipts + Reserves) - Cash disbursements 
Excess = ($7,000 + $47,000 + $4,000) - $41,000 
Excess = $58,000 - $41,000 
Excess = $17,000

Therefore, the excess for December is $9,000.

NorWest Outdoor Store Will Have Cash Receipts of $47,000 in December