Problem

Cash budget The monthly cash budgets for the second quarter of 2010 follow ($000 omitted)...

Cash budget The monthly cash budgets for the second quarter of 2010 follow ($000 omitted) for Morrison Mfg. Co. A minimum cash balance of $30,000 is required to start each month, and a $100,000 line of credit has been arranged with a local bank at a 8% interest rate.

 

April

May

June

Total

Cash balance, beginning

$ 26

$ ?

$ ?

$ 26

Add collections from customers

?

108

?

?

Total cash available

$ 94

$ ?

$166

$338

Less disbursements:

Purchase of inventory

$ ?

$ 60

$ 48

$ ?

Operating expenses

30

?

?

?

Capital additions

34

8

?

44

Payment of dividends

?

  8

Total disbursements

$ ?

$108

$ 82

$304

Excess (deficiency) of cash available

over disbursements

$(20)

$ ?

$ 84

$ ?

Borrowings

?

?

Repayments (including interest)  

?

?

Cash balance, ending

$ ?

$30

$ ?

$ 33

Required:

Calculate the missing amounts. (Hint: The total cash available includes col­lections from customers for all three months, plus the beginning cash balance from April 1, 2010.)

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