In the Month of August, a Firm Had Total Cash

Multiple Choice

In the month of August, a firm had total cash receipts of $10,000, total cash disbursements of $8,000, depreciation expense of $1,000, a minimum cash balance of $3,000, and a beginning cash balance of $500. The excess cash balance (required financing) for August is

A) required total financing of $500.
B) excess cash balance of $5,500.
C) excess cash balance of $500.
D) required total financing of $2,500.