The Haines City payment schedule shows vendor bills due of $144,600. Cash available is $168,000, but management wants a $19,600 cash floor. How much cash remains after paying the due bills?
Correct Answer
A) $3,800
Cash remaining after payment equals available cash less the desired floor and due bills.
Why This Is the Correct Answer
Cash remaining after payment equals available cash less the desired floor and due bills.
Why the Other Options Are Wrong
Option B: $23,400
$23,400 is above the supported result for payment scheduling; it likely adds an unsupported amount or compares the wrong financial base.
Option C: $148,400
$148,400 is above the supported result for payment scheduling; it likely adds an unsupported amount or compares the wrong financial base.
Option D: $125,000
$125,000 is above the supported result for payment scheduling; it likely adds an unsupported amount or compares the wrong financial base.
Memory Technique
Payment Scheduling drawer for Controller Reviews: label cash before counting dollars.
Reference Hint
Open-book path: tab Contractor's Manual, 2025 to Business Administration, Payment Scheduling and Cash Control; confirm the administrative procedure and required supporting record.
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