The minimum cash balance

Question 5 

In June, Erie Plastics had an ending cash balance of $35,000. In July, the firm had total cash receipts of $40,000 and total cash disbursements of $50,000. The minimum cash balance required by the firm is $25,000. At the end of July, Erie Plastics had

 

an excess cash balance of $25,000

 

An excess cash balance of $0

 

required financing of $10,000

 

required financing of $25,000