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 er (000 omitted) ear ash balance, beginning dd collections from customers 106 67 Total cash available ess disbursements Purchase of inventory Selling and administrative expenses Equipment purchases Dividends otal disbursements xcess (deficiency) of cash available over 32 30 2) disbursements nancing Borrowings Repayments (including interest) * otal financing ash balance, ending Interest will total S1,000 for the year.

Explanation / Answer

CASH BUDGET Quarter-1 Quarter-2 Quarter-3 Quarter-4 Year Cash balance, Beginning 8 5 5 5 8 Add: Collections from customer 69 90 106 98 363 Total Cash available 77 95 111 103 371 Less: Disbursement    Purchase of Inventory 45 55 50 29 179    Seling and admin expense 25 32 30 24 111    Equipment purchase 7 8 20 10 45    Dividends 2 2 2 2 8 Total disbursement 79 97 102 65 343 Excess (Deficiency) of cash available -2 -2 9 38 28 Financing:     Borrowings 7 7 14     Repayments (including interest) -4 -11 -15 Total Financing 7 14 10 0 -1 Cash balance, at the end 5 5 5 27 27

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