Question
A company is preparing its cash budget. Its cash balance on January 1 is $290,000, and it has a minimum cash requirement of $340,000. The
A company is preparing its cash budget. Its cash balance on January 1 is $290,000, and it has a minimum cash requirement of $340,000. The following data has been provided:
| January | February | March | |
| Cash receipts | $1,061,200 | $1,182,400 | $1,091,700 |
| Cash payments | 984,500 | 1,210,000 | 1,075,000 |
What is the amount of cash excess or deficiency (after considering the minimum cash balance required) for March?
|
| excess of $214,200 |
|
| excess of $15,800 |
|
| deficiency of $60,000 |
|
| excess of $25,300 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Accounting Principles
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
9th Edition
978-0470317549, 9780470387085, 047031754X, 470387084, 978-0470533475
