A cash budget, by quarters, is given below for a retail company (000 omitted). T
ID: 2461595 • Letter: A
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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.)
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) Year Cash balance, beginning Add collections from customers Total cash available Less disbursements 103 347 70 42 34 Purchase of inventory Selling and administrative expenses Equipment purchases Dividends 52 32 30 103 17 49 94 Total disbursements Excess (deficiency) of cash available over disbursements Financing Borrowings 10 Repayments (including interest) Total financing Cash balance, ending "Interest will total $1,000 for the yearExplanation / Answer
Cash Budget Quarter (000 Omitted) Year 1 2 3 4 Cash Balance, Beginning 9 5 5 5 9 Add: Collections from customers 70-9 = 61 89-5 = 84 103 347-103-84-61 = 99 347 Total Cash Available 70 94-5 = 89 103+5 = 108 5+99 = 104 9+347 = 356 Less: Disbursment Purchase of Inventory 42 52 97-2-17-30 = 48 34 42+52+48+34 = 176 Selling and Administrative Expenses 78-42-14-2 = 11 32 30 103-30-32-20 = 21 103 Equipment purchases 14 8 17 49-17-8-14 = 10 49 Dividends 2 2 2 2 2+2+2+2 = 8 Total Disbursments 70+8 = 78 94 108-11 = 97 34+21+10+2 = 67 176+103+49+8 = 336 Excess (Deficiency) of cash available over disbursments -8 5-10 = -5 11 104-67 = 37 356-336 = 20 Financing Borrowings 13 10 10+13 = 23 Repayments (Including Interest)* 5-11 = -6 -18 -6-18 = -24 Total Financing 13 10 -6 -18 -1 Cash Balance, Ending 13-8 = 5 5 5 37-18 = 19 20-1 = 19 * Interest will total $1,000 for the year
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