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July August September Beginning cash balance $10,000 $ ? $ ? Add: Cash receipts

ID: 2369365 • Letter: J

Question

July

August

September

Beginning cash balance

$10,000

$ ?

$ ?

Add: Cash receipts

50,000

63,000

71,000

Deduct: Cash payments

-64,000

-58,000

-64,000

Cash excess (deficiency) before financing

($4,000)

$ ?

$ ?

Financing

Borrowing to maintain minimum balance

?

?

?

Principal repayment

?

?

?

Interest payment

?

?

?

Ending cash balance

$ ?

$ ?

$ ?

Chapter 6 Exercise 5
5. Abbreviated cash budget; financing emphasis

An abbreviated cash budget for Big Chuck Enterprises follows.


July

August

September

Beginning cash balance

$10,000

$ ?

$ ?

Add: Cash receipts

50,000

63,000

71,000

Deduct: Cash payments

-64,000

-58,000

-64,000

Cash excess (deficiency) before financing

($4,000)

$ ?

$ ?

Financing




Borrowing to maintain minimum balance

?

?

?

Principal repayment

?

?

?

Interest payment

?

?

?

Ending cash balance

$ ?

$ ?

$ ?

Explanation / Answer

July

August

September

Beginning cash balance

$10,000

9,000

9,000

Add: Cash receipts

50,000

63,000

71,000

Deduct: Cash payments

-64,000

-58,000

-64,000

Cash excess (deficiency) before financing

($4,000)

($14,000)

($16,000)

Financing

Borrowing to maintain minimum balance

0

0

0

Principal repayment

0

0

0

Interest payment

0

0

0

Ending cash balance

$4,000

$14,000 $16,000

July

August

September

Beginning cash balance

$10,000

9,000

9,000

Add: Cash receipts

50,000

63,000

71,000

Deduct: Cash payments

-64,000

-58,000

-64,000

Cash excess (deficiency) before financing

($4,000)

($14,000)

($16,000)

Financing




Borrowing to maintain minimum balance

0

0

0

Principal repayment

0

0

0

Interest payment

0

0

0

Ending cash balance

$4,000

$14,000 $16,000