A cash budget, by quarters, is given below for a retail company (000 omitted). T

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 $8,000 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.)

Quarter (000 omitted) Year Cash balance, beginning Add collections from customers Total cash available Less disbursements 120 415 79 31 Purchase of inventory Selling and administrative expenses Equipment purchases Dividends 65 45 30 119 13 30 62 Total disbursements Excess (deficiency) of cash available over disbursements Financing 121 Borrowings Repayments (including interest) Total financing Cash balance, ending "Interest will total $1,000 for the year. (28)

Explanation / Answer

Q1 Q2 Q3 Q4 Year Cash budget: Cash Balance Beginning 6 8 8 8 6 Cash collection from customer 73 110 128 104 415 Total Available cash 79 118 136 112 421 Less: Disbursement Purchase of inventory 55 65 63 31 214 Selling and admin expense 20 45 30 24 119 Equipment purchase 13 9 30 10 62 Dividends 2 2 2 2 8 Total disbursement 90 121 125 67 403 Excess (Deficiency) -11 -3 11 45 18 Financing: Borrowings 19 11 30 Repayments including Interest -3 -28 -31 Total financing 19 11 -3 -28 -1 Cash Balance, ending 8 8 8 17 17

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