cash budget, by quarters, is given below for a retail company (000 omitted), The
ID: 2405595 • Letter: C
Question
cash budget, by quarters, is given below for a retail company (000 omitted), The company requires a minimum cash balance of a east $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 565 85 Cash balance, beginning Add collections from customers Total cash available Less disbursements: 100 356 108 39 31 Purchase of inventory Selling and administrative expenses Equipment purchases 49 30 10 30 123 14 10 45 91 Total disbursements Excess (deficiency) of cash available over disbursements Financing 15 Borrowings 13 (19) Repayments (including interest) Total financing Cash balance, ending Interest will total $1,000 for the yearExplanation / Answer
1
2
3
4
Year
Cash Bal. Beg
6
8
8
8
6
Add: Collections from Customers
82
78
100
96
356
Less: Disbursements
Purchase of Inventory
39
49
47
31
166
S and A
40
30
30
23
123
Eq Purchases
11
10
14
10
45
Dividends
2
2
2
2
8
Total
92
91
93
66
342
Excess(deficiency) of cash available over disbursements
(4)
(5)
15
38
20
Financing:
Borrowings
12
13
0
0
25
Repayments(incl interest)
0
0
(7)
(19)
(26)
Total Financing
12
13
(7)
(19)
(1)
Cash Balance Ending
8
8
8
19
19
* Interest Paymnets of 1000
All numbers have been obtained by simple +,-
For eg. Negative cash balance of 4 in Quarter 1 which means collections are 4000 less than paymnets, hence payment for Selling and Administrative Expenses being 40
2. Total Selling expenses for Year is 123, from which we can calculate Selling Expenses for 4th Quarter
1
2
3
4
Year
Cash Bal. Beg
6
8
8
8
6
Add: Collections from Customers
82
78
100
96
356
Less: Disbursements
Purchase of Inventory
39
49
47
31
166
S and A
40
30
30
23
123
Eq Purchases
11
10
14
10
45
Dividends
2
2
2
2
8
Total
92
91
93
66
342
Excess(deficiency) of cash available over disbursements
(4)
(5)
15
38
20
Financing:
Borrowings
12
13
0
0
25
Repayments(incl interest)
0
0
(7)
(19)
(26)
Total Financing
12
13
(7)
(19)
(1)
Cash Balance Ending
8
8
8
19
19
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.