CCOUNTING pter 7 HW Question 1 (of 2) value 10.00 points A cash budget, by quart

Question

CCOUNTING pter 7 HW Question 1 (of 2) value 10.00 points 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.) omitted Cash balance, beginning Add collections from customers Total cash available Less disbursements 113 391 72 Purchase of inventory Selling and administrative expenses Equipment purchases Dividends 52 62 28 45 30 106 15 27 61 Total disbursements Excess (deficiency) of cash available over disbursements Financing 118 14 Repayments (including interest) . Total financing Cash balance, ending Interest will total $1,000 for the year (26) References eBook & Resources

Explanation / Answer

SOLUTION

1 2 3 4 Year Cash balance, beginning 7 5 5 5 Add collections from customers 65 104 113 109 391 Total cash available 72 109 118 114 Less disbursements:   Purchase of inventory. 52 62 53 28 195 Selling and administrative expense 10 45 30 21 106   Equipment purchases 15 9 27 10 61   Dividends 2 2 2 Total disbursements 79 118 112 Excess (deficiency) of cash available over disbursements (7) (9) 6 Financing: Borrowings 12 14 0   Repayments (including interest) 0 0 (1) (26) Total financing 12 14 (1) Cash balance, ending 5 5 5

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