Question

1.

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 1 Quarter (000 omitted) 2 3 4 Year Cash balance, beginning Add collections from customers Total cash available 99 348 I Less disbursements: Purchase of inventory 48 30 301 121 10 90 - 13| Selling and administrative expenses Equipment purchases Dividends Total disbursements Excess (deficiency) of cash available over disbursements Financing: Borrowings Repayments (including interest) * Total financing Cash balance, ending *Interest will total $1,000 for the year. 140

2.

Answer 1

Cash Budget- Missing Amount
	1	2	3	4	Year
Cash Balance, beginning	9	5	5	5	9
Add collections from customers	78	76	99	95	348
Total cash available	87	81	104	100	357
Less disbursements
Purchase of Inventory	38	48	46	30	162
Selling and Admin Expenses	39	30	30	22	121
Equipment purchases	10	10	13	10	43
Dividends	2	2	2	2	8
Total disbursements	89	90	91	64	334
Excess(deficiency)	-2	-9	13	36	23
Financing
Borrowings	7	14	0	0	21
Repayments (including interest)	0	0	-8	-14	-22
Total financing	7	14	-8	-14	-1
Cash Balance, ending	5	5	5	22	22

B 87 38 1 Cash Budget- Missing Amount 2 Year 3 Cash Balance, beginning =B17 5 =B3 4. Add collections from customers =B5-B3 C5-03 99 =F4-SUM(B4:04) 348 5 Total cash available =C11+C12 =D4+D3 =E3+E4 =SUM(F3:F4) 6 Less disbursements 7 Purchase of Inventory 48 =D11-SUM(D8:D10) 30 =SUM(B7:E7) 8 Selling and Admin Expenses =B11-B7-B9-B10 30 30 =F8-SUM(B8:D8) 121 9 Equipment purchases 13 =F9-SUM(B9:09) 43 10 Dividends 2 11 Total disbursements =B5-B12 =SUM(C7:C10) =D5-D12 =SUM(E7:E10) I=SUM(B11:E11) 12 Excess(deficiency) =C17-C14 =13 =E5-E11 =F5-F11 13 Financing 14 Borrowings 7 14 lo =SUM(B14:E14) 15 Repayments (including interest) 0 -8 -14 =SUM(B15:E15) 16 Total financing =C14+C15 =D14+D15 =E14+E15 I=SUM(B16:E16) 17 Cash Balance, ending =E12+E16 =F12+F16 10 10 1-2