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

Question

Quizplus · Accepted Answer

Beginning cash balance = $7,000
Cash receipts = $47,000
Total Cash = $54,000
Cash disbursements = $41,000
Desired reserve = $4,000
Total cash needed for reserve and expenses = $45,000
Excess cash = Total cash - Total cash needed for reserve and expenses
Excess cash for December = $54,000 - $45,000 =$9,000. Therefore, the answer is (C).

Southwest Outdoor Store Will Have Cash Receipts of $47,000 in November