In April, a firm had an ending cash balance of $35,000. In May, the firm had total cash receipts of $40,000 and total cash disbursements of $50,000. The minimum cash balance required by the firm is $25,000. At the end of May, the firm had
A. an excess cash balance of $25,000.
B. an excess cash balance of $0.
C. required financing of $10,000.
D. required financing of $25,000.
Answer:B
In April, a firm had an ending cash balance of $35,000. In May, the firm had total cash receipts of $40,000 and total cash disbursements of $50,000. The minimum cash balance required by the firm is $25,000. At the end of May, the firm had
A. an excess cash balance of $25,000. B. an excess cash balance of $0. C. required financing of $10,000. D. required financing of $25,000.