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 Cash balance, beginning Add collections from customers Total cash available Less disbursements: 389 80 50 60 34 Purchase of inventory Selling and administrative expenses Equipment purchases Dividends 45 30 119 13 25 57 2 116 Total disbursements Excess (deficiency) of cash available over disbursements Financing 16 Borrowingts (25) Repayments (including interest)" Total financing Cash balance, ending "Interest will total $1,000 for the year

Explanation / Answer

Cash Budget Quarter ( 000 ommited) 1 2 3 4 Year Cash Balance Beginning 9 5 5 5 Add: collection 71 100 111 107 389 Total cash available 80 105 116 112 413 Less: Disbursement Purchase of Inventory 50 60 52 34 196 Selling and administrative expenses 20 45 30 24 119 Equipment purchase 13 9 25 10 57 Dividend 2 2 2 2 8 Total Disbursement 85 116 109 70 380 Excess/ (Deficiancy) -5 -11 7 42 Financing Borrowing 10 16 Repayment (including interest) -2 -25 Total financing 10 16 -2 -25 Cash balance ending 5 5 5 17 Borrowing 26 and repayment 27, which is inclusive of interest $1.

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