Final answer:
Without specific budget figures for July, it's not possible to calculate the exact excess (deficiency) of cash for Sunland Company. The discussion includes an example of how bank balance sheet transactions affect assets and loans, and the impact of M1 money supply changes, but these are illustrative and do not provide a direct answer to the student's question.
Step-by-step explanation:
To address the student's question regarding the excess (deficiency) of cash available at the end of July for Sunland Company, it's necessary to look at the company's cash budget for the month. Unfortunately, the provided scenario does not include specific budget numbers for Sunland Company's July cash budget, which are essential to calculate the excess or deficiency. However, the process involves adding total expected cash inflows to the beginning cash balance, subtracting total expected cash outflows, and comparing the remaining balance to the desired end-of-month cash balance policy.
Assuming the students wanted to relate this to the given balance sheet changes for Singleton Bank as an example of how balance sheets are affected by transactions, the loan of $9 million to Hank's Auto Supply is shown as an increase in assets (the loan), with deposits remaining constant. This illustrates a change in the composition of Singleton Bank's assets rather than its cash position specifically. To tie it back to Sunland Company, the transaction would be similar to Sunland receiving a loan, which would increase its cash balance, affecting its end-of-month cash position. The bank's balance sheet management, particularly its reserves and loans, indirectly affect the business's cash handling and are examples of financial events that would influence a company's cash budget.
Additionally, according to Singleton Bank's transaction with First National, the M1 money supply changes when banks make loans and when these loans are subsequently deposited, as reserves increase and loans are added to the system, which can be related to a company's cash position if such deposits or loans are part of their cash budgeting figures.