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

Question

A cash budget, by quarters, is shown below for a retail company (000 omitted). The company requires a minimum cash balance of $5,000 to start each quarter. Fill in the missing amounts. (Enter your answers in thousands of dollars. Input all amounts as positive values except deficiency, repayments, and interest, which should be indicated by a minus sign. Leave no cells blank - be certain to enter "0 wherever required. Total Financing should be indicated with a minus sign when the company is repaying amounts that were previously borrowed.)

Explanation / Answer

Quarter 1 2 3 4 TOTAL Cash Balance ,Beginning 9 5 5 5 9 Add Collection From Customers 76 90 125 100 391 Total Cash Available 85 95 130 105 400 Less Disbursments Purchase Of Inventory 40 58 36 32 166 Operating Expenses 36 42 54 48 180 Equipment Purchase 10 8 8 10 36 Dividends 2 2 2 2 8 Total Disbursment 88 110 100 92 390 Excess (Deficiency) of Cash Available over Disbursment -3 -15 30 13 10 Financing Borrowing 8 20 28 Repayment 0 -25 -7 -32 Total Financing 8 20 -25 -7 -4 Cash Balance ending 5 5 5 6 6

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