Question

ACC350 Cost Accounting NAME(PRINT)- DATE PROBLEM I Lancer Company's summary of it budgeted cash flows is given below. 1" Quarter 2nd Quarter 3 Quarter Total cash receipts... $ 170,000 $350,000 $230,000 Total cash disbursements...... $240,000 $260,000 $200,000 4th Quarter $250,000 $250,000 Beginning cash balance for upcoming fiscal year, $18,000 Minimum cash balance required, $ 14,000 Interest rate5% per quarter Repay loan the end of any quarter. Interest is due on any principal at the time it is paid. Interest is nu compounded. Required: Prepare the company's cash budget for the upcoming fiscal year.

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Answer 1

A. C E F Cash Budget 2nd Qtr 3rd Qtr 4th Qtr Particulars 1st Qtr Total $14,000 $350,000 $260,000 $104,000 $18,000 $250,000 $1,000,000 $250,000 $950,000 $64,700 $18,000 $170,000 $240,000 -$52,000 $66,000 3 Beginning cash balance 4 Total cash receipts $34,700 $230,000 $200,000 5 Less: Total disbursements $64,700 6 Ending cash balance before borrowing or repayment $64,700 $68,000 7 Add: Borrowed 8 Less: Repayment of loan Less: Payment of interest -$66,000 -$3,300 $34,700 -$3,300 $64,700 $14,000 $64,700 $64,700 10 Desired ending cash balance

A. C Е F Cash Budget 1 2nd Qtr 3rd Qtr 4th Qtr Particulars 1st Qtr Total 2 3 Beginning cash balance 4 Total cash receipts 18000 -C10 -B10 D10 ЕВЗ -SUM(B4:E4) |=SUM(B5:E5) -F3+F4- F5 350000 230000 170000 250000 5 Less: Total disbursements 6 Ending cash balance before borrowing or repayment 250000 240000 B3+B4-B5 260000 200000 ЕС3+C4-С5 D3+D4-D5 -E3+E4-E5 -B6+14000 7 Add: Borrowed 8 Less: Repayment of loan 9 Less: Payment of interest -66000 |-SUM(B9:E9) -SUM(B6:B9)SUM(C6:C9)SUM (D6:D9) SUM(E6:E9)SUM(F6:F9) -B7*0.05 10 Desired ending cash balance