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

ID: 2456995 • Letter: A

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 $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.) Cash Budget Quarter (000 omitted) 4 Year Cash balance, beginning Add collections from customers Total cash available Less disbursements: 9 107 367 74 46 30 Purchaseo Selling and administrative expenses Equipment purchases Dividends 56 32 9 2 109 30 21 2 9 49 2 2 Total disbursements Excess (deficiency) of cash available over disbursements Financing. (10) 9 Borrowings (19) Repayments (including interest) * Total financing Cash balance, ending *Interest will total $1,000 for the year.

Explanation / Answer

Cash Budget Quarter (000 Omitted) Amount in ($000) 1 2 3 4 Total Cash Balance , begning 9 5 5 5 24 Add Collection from Customers 65 92 107 103 367 Total cash Available 74 97 112 108 391 Less: Disbursement purchases of Inventory 46 56 50 30 182 Selling and administrative Exp 27 32 30 20 109 Equipment Exp 9 9 21 10 49 Dividends 2 2 2 2 8 Total Disbursement' 84 99 103 62 348 Excess(Difficiency ) of cash available -10 -2 9 46 43 Financing Borrowing 15 7 22 Repayment ( *Including Interst) -4 -19 -23 Total Financing 15 7 -4 -19 -1 Cash balance Ending 5 5 5 27 42 *Interst will total $1000 for the yera

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

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

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