Question

Exercise 8-11 Cash Budget Analysis (LO8-8) A cash budget, by quarters, is given below for a retail company 1000 omitted). The company requires a minimum cash balance of a 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.) DO Quarter 1000 omitted 1000 omitted Cash balance, bogning Add collections from customers Total cash valable Los bursements Purchase of mentory Selling and administrave expenses Equipment purchases Dividends Total disbursements Excess deficiency of cash available over disbursements Repayments including interest 1 2 Next >

Answer 1

Cash Budget- Missing Amount
	1	2	3	4	Year
Cash Balance, beginning	6	5	5	5	6
Add collections from customers	65	70	96	92	323
Total cash available	71	75	101	97	329
Less disbursements
Purchase of Inventory	35	45	48	35	163
Selling and Admin Expenses	28	30	30	25	113
Equipment purchases	8	8	10	10	36
Dividends	2	2	2	2	8
Total disbursements	73	85	90	72	320
Excess(deficiency)	-2	-10	11	25	9
Financing
Borrowings	7	15	0	0	22
Repayments (including interest)	0	0	-6	-17	-23
Total financing	7	15	-6	-17	-1
Cash Balance, ending	5	5	5	8	8

C D Year 3 =C17 96 =D3+D4 =B17 C5-03 =C11+C12 =B5-B3 71 =D17 =F4-SUM(B4:04) =E3+E4 323 =SUM(F3:F4) 35 45 30 10 1 Cash Budget- Missing Amount 2 3 Cash Balance, beginning 4 Add collections from customers 5 Total cash available 6 Less disbursements 7 Purchase of Inventory 8 Selling and Admin Expenses 9 Equipment purchases 10 Dividends 11 Total disbursements 12 Excess(deficiency) 13 Financing 14 Borrowings 15 Repayments (including interest) 16 Total financing 17 Cash Balance, ending 18 =B11-B7-B9-B10 8 2 =B5-B12 -2 Mo 60 =D11-SUM(D8:D10) 35 =F8-SUM(B8:D8) =F9-SUM(B9:09) 2 2 =D5-D12 =SUM(E7:E10) 11 =E5-E11 =SUM(B7:E7) 113 36 =SUM(B10:E10) =SUM(B11:E11) =F5-F11 2 =C17-C14 7 0 15 O =C14+C15 -17 0 =5-D12 =D14+D15 =D12+D16 =SUM(B14:E14) =SUM(B15:E15) =SUM(F14:F15) =F12+F16 =B14+B15 =B12+B16 =E14+E15 =E12+E16