Answer:
The correct answer is:
excess of $15,800 (d.)
Explanation:
In order to calculate the cash excess or deficiency for March, we have to determine the net balance for the period from January, February and March, after deducting the total expenditures from the incomes as follows:
Cash Receipts (income)
January 1 balance = $ 290,000
January = $ 1,061,200
February = $ 1,182,400
March = $ 1,091,700
Total cash receipt = $3,625,300
Cash payments (expenditure)
January = $ 984,500
February = $ 1,210,000
March = $ 1,075,000
Total payments = $ 3,269,500
Net cash available = total cash receipts - total cash payments
= 3,625,300 - 3,269,500 = $355,800
Note, we are told that the minimum cash requirement = $340,000
Therefore:
Cash excess (deficiency) = Net cash available - minimum cash requirement
= 355,800 - 340,000 = $15,800 (excess)
<em>excess because cash available is greater than the minimum cash requirement.</em>
