Question

A cash budget, by quarters, is given below for a retail company (000 omitted). The company requires a minimum cash balance of at least $5,000 to start each quarter. Fill in the missing amounts. (Enter your answers in thousands of dollars. Cash deficiencies and Repayments should be indicated by a minus sign.) X Answer is not complete. Cash Budget 1 4 Quarter (000 omitted) 2 3 $ 5 $ 5 113 $ $ 5 $ 7 65 Year 7 391 Cash balance, beginning Add collections from customers Total cash available Less disbursements: 72 Purchase of inventory 28 30 106 00 NON 27 61 Selling and administrative expenses Equipment purchases Dividends Total disbursements Excess (deficiency) of cash available over disbursements Financing: 2 118 (7) - 148 14 L (26) Borrowings Repayments (including interest) * Total financing Cash balance, ending *Interest will total $1,000 for the year.

Answer 1

Answer:

Quarter (000 omitted) Cash Budget 1. 4 Year $5 $5 $109 Cash balance, beginning $7 $5 $7 Add collections from customers $104 65 113 391 $72 $109 $118 $114 $398 Total cash available Less disbursements: Purchase of inventory Selling and administrative expens Equipment purchases 62 $53 52 28 195 $30 $21 10 106 45 27 15 10 61 Dividends 2 2. $79 $118 $112 $61 $370 Total disbursements Excess (deficiency) of cash available -$7 -$9 $53 $28 6. Financing: Borrowing 12 14 26 Repayments (including interest) -1 -26 -27 Total financing Cash balance, ending 14 12 -1 -26 $5 $5 $5 $27 $27