Answer:
The excess cash available will be $30,000
Explanation:
The following information were given:
beginning cash balance = $29,000
budgeted cash receipt = $187,000
budgeted cash disbursement = $186,000
desired ending cash balance = $51,000
required = excess (deficiency) of cash available over disbursement.
To calculate the excess (deficiency) of cash available over disbursement, disbursements will be deducted from all the cash received and available, if the difference is positive, then the cash available is excess, if negative, then the cash available is deficiency. This is calculated as follows
Total cash available = beginning cash balance + budgeted cash receipt
= 29,000 + 187,000 = $216,000
Total disbursements = $186,000
∴Excess (deficiency) of cash available = 216,000 - 186,000 =$30,000 (excess)
