10.00 points A cash budget, by quarters, is given below for a retail company (00

Question

10.00 points A cash budget, by quarters, is given below for a retail company (000 omited) 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 61 103 347 70 Purchase of inventory Selling and administrative expenses Equipment purchases 42 20 14 52 34 32 30 103 17 Total disbursements Excess (deficiency) of cash available over disbursements Financing 78 94 10 Repayments (including interest) Total financing Cash balance, ending Interest will total $1,000 for the year (18) Type here to search

Explanation / Answer

Cash Budget

Quarter (000 omitted)

1

2

3

4

Year

Cah balance, beginning

$9

$5

$5

$5

$9

Add: Collection from customers

$61

$84

$103

$99

$347

Total cash available

$70

$89

$108

$104

$356

Less: Disbursements;

Purchase of inventory

$42

$52

$48

$34

$176

Selling & Administrative expenses

$20

$32

$30

$21

$103

Equipment purchases

$14

$8

$17

$10

$49

Dividends

$2

$2

$2

$2

$8

Total disbursements

$78

$94

$97

$67

$336

Excess (Deficiency) of cash

($8)

($5)

$11

$37

$20

Financing;

Borrowings

$13

$10

$23

Repayment (Including interest)

($6)

($18)

($24)

Total financing

$13

$10

($6)

($18)

($1)

Cash balance ending

$5

$5

$5

$19

$19

Cash Budget

Quarter (000 omitted)

1

2

3

4

Year

Cah balance, beginning

$9

$5

$5

$5

$9

Add: Collection from customers

$61

$84

$103

$99

$347

Total cash available

$70

$89

$108

$104

$356

Less: Disbursements;

Purchase of inventory

$42

$52

$48

$34

$176

Selling & Administrative expenses

$20

$32

$30

$21

$103

Equipment purchases

$14

$8

$17

$10

$49

Dividends

$2

$2

$2

$2

$8

Total disbursements

$78

$94

$97

$67

$336

Excess (Deficiency) of cash

($8)

($5)

$11

$37

$20

Financing;

Borrowings

$13

$10

$23

Repayment (Including interest)

($6)

($18)

($24)

Total financing

$13

$10

($6)

($18)

($1)

Cash balance ending

$5

$5

$5

$19

$19

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