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 $4,000 to start each quarter. Fill in the missing amounts.

Quarter (000 omitted) 2 Year Cash balance, beginning Add collections from customers Total cash available Less disbursements 7 109 392 89 Purchase of inventory Selling and administrative expenses Equipment purchases Dividends 48 58 32 30 23 2 45 127 53 2 2 2 Total disbursements Excess (deficiency) of cash available over disbursements Financing 114 Borrowings Repayments (including interest) * Total financing Cash balance, ending "Interest will total $1,000 for the year (22)

Answer 1

The answer has been presented in the supporting sheets. All the parts has been solved with detailed explanation and formulas and format. For detailed answers refer to the supporting sheets.

Quarter (000 omitted 4 Year Cash Balance, Beginnin Add collection from customers Total cash available Less disbursements: 392 82 89 109 113 105 109 100 189 127 53 51 32 Purchase of invento Selling and administratice expenses Equipment purchases Dividends 10 23 2 106 2 2 2 377 91 114 Total disbursements Excess (defiecency) of cash avaliable over disbursements Financin 43 14 24 25 18 Borrowings Repayments (including interest)* Total financin Cash balance, endirn *interest will total $1000 for the year 18 21 21

Year 1 うCollec hon kom (witr nar. Tatnd Cash available-Opening Cash 89-3 ailable - debeoencgt ns 4 Clesing GaRauing 4.

Toted Cash available 1 113 DisbutiemantTotal Cashavailable -Excess 106 106.55 51 tal Aveilable-Closin olle Total Cash avai lable -$1osty 2 53-43 Total DiAb ucd emant