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.) Cash Budget Quarter (000 omitted) 2 3 1 4 Year 113 391 72 Cash balance, beginning Add collections from customers Total cash available Less disbursements: Purchase of inventory Selling and administrative expenses Equipment purchases 2 8 106 52 62 | 45 15 9 22 118 30 27 2 21 Dividends Total disbursements Excess (deficiency) of cash available over disbursements Financing: Borrowings Repayments (including interest) * Total financing (26) Cash balance, ending *Interest will total $1,000 for the year.

Answer 1

Quarter Cash Budget Cash balance beginning Add Collection from customers $ |3 5 $ 5 $ 104$ 113 $ 109 $ 118 $ 1 2 4 Year 7$ 5 $ 109$ 114 $ $ 7 65$ 391 Total cash available Less Disbursements Purchase of inventory |Selling and adm expenses Equipment purchase Dividends Total disbursements Excess / Deficiency) of cash Financing Borrowings Repayment( including interest) Total financing Cash ending Interest will be $1000 total for the year 72 $ $ 398 62 $ 45 $ 9 $ 2 $ 53$ 30 $ 27$ 2 $ 112 $ 28 $ 21 $ 10 $ 2 $ 61 $ 53$ $ 52 $ $ 195 10 $ 15 $ 2 $ 79$ 106 61 8 118 $ 370 (7) 6 $ (9) $ 28 12 $ $ 26 $ 14 26 1$ 25 $ 27 12 $ 26 $ $ 5 $ 27 $ 27 Please provide feedback with UP VOTE