For August, Bletchley Blinds will have cash receipts of $97,000 and cash disbursements of $108,000. If its beginning cash is $5,000 and its desired reserve is $2,000, what will be its shortfall in cash for the month?
A) There is no shortfall in cash but an excess of cash.
B) -$11,000
C) -$8,000
D) -$6,000
Answer: C
Explanation: C) Its net cash flow for the month is cash receipts minus cash disbursements = $97,000 - $108,000 = -$11,000. Its ending cash is net cash flow plus beginning cash = -$11,000 + $5,000 = -$6,000. Its short-fall is ending cash minus reserves = -$6,000 - $2,000 = -$8,000.
You might also like to view...
According to McClelland, the most important needs for managers are the needs for
A. existence, relatedness, and growth. B. equity and fair treatment. C. achievement, affiliation, and power. D. motivation and hygiene. E. self-actualization and ego.
You have been hired as the assistant director of a company's Human Resource Department. The director calls you in and tells you that she is considering a suggestion to the Board of Directors that the company adopt a policy of refusing to give substantive information on employee references. She asks you if adopting such a policy makes sense. What advice will you give to her?
The filing of a petition for bankruptcy will automatically stay most legal actions against the debtor.?
Indicate whether the statement is true or false
Generally, the prevailing party in a lawsuit is awarded the costs of the action, including witness fees and jury fees
Indicate whether the statement is true or false