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 $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) Cash balance beginning $6 Add collections from 108 customers Total cash available Less disbursements: Purchase of inventory 69 47 57 31 32 98 Selling and administrative expenses 30 Equipment purchases 10 51 vidends 2

Explanation / Answer

CASH BUDGET Q-1 Q-2 Q-3 Q-4 YEAR Cash beginning balance 6 5 5 5 6 Add: Cash collections from customer 63 94 108 104 369 Total cash available 69 99 113 109 375 Less: Dissbursement Purchase fo inventory 47 57 51 31 186 Selling and admin expense 15 32 30 21 98 Equipment purchase 10 9 22 10 51 Dividend 2 2 2 2 8 Total disbursement 74 100 105 64 343 Excess/(deficiency) of cash -5 -1 8 45 32 Financing: Borrowing 10 6 16 Repayment (including interest) -3 -14 -17 Total financinng 10 16 13 0 0 Cash balance Ending 5 5 5 31 31

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