Pancake Castle will have cash receipts of $75,000 in June and cash disbursements of $40,000 for this month. If its beginning cash is $8,000 and its desired reserve is $10,000, what will its excess be for April?

A. There is no excess but a shortfall.
B.$33,000
C.$8,000
D.$25,000

The excess cash for April at the end is $33000. So option B is the correct answer.

Explanation:

The excess is the additional cash held at the year end in addition to the desired reserve. The ending cash balance can be calculated as,

Ending cash balance = Opening cash balance + Cash Receipts for the month - Cash payments for the month

Ending cash balance = 8000 + 75000 - 40000 = $43000

Out of the $43000 ending cash balance, the desired reserve is $10000. Thus,, the excess cash for April is,

Excess cash = 43000 - 10000 = $33000

the answer is b for dog

answer; balance sheets;