Cash Balances Calculation
Situation 1:
Checking account balance: $1,054,500
Certificate of deposit: $1,596,000
Cash advance to subsidiary: $1,117,200
Utility deposit paid to gas company: $212
Cash balance: $2,651,912 ($1,054,500 + $1,596,000 + $1,117,200 + $212)
Situation 2:
Checking account balance: $684,000
Overdraft in special checking account: $19,380
Cash held in a bond sinking fund: $228,000
Petty cash fund: $342
Coins and currency on hand: $1,599
Cash balance: $894,561 ($684,000 + $228,000 + $1,599 + $342 - $19,380)
Situation 3:
Checking account balance: $672,600
Postdated check from customer: $12,540
Cash restricted due to maintaining compensating balance requirement: $114,000
Certified check from customer: $11,172
Postage stamps on hand: $700
Cash balance: $558,012 ($672,600 + $11,172 - $12,540 - $114,000 + $700)
Situation 4:
Checking account balance at the bank: $42,180
Money market balance at a mutual fund with checking privileges: $54,720
NSF check received from customer: $912
Cash balance: $95,988 ($42,180 + $54,720 - $912)