In the month of August, a firm had total cash receipts of $10,000, total cash disbursements of $8,000, depreciation expense of $1,000, a minimum cash balance of $3,000, and a beginning cash balance of $500. The excess cash balance (required financing) for August is

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The firm starts with $500, receives $10,000, and disburses $8,000, leaving $2,500. With a minimum cash balance requirement of $3,000, they need $500 more, hence required financing of $500.

In the Month of August, a Firm Had Total Cash