A cash budget, by quarters, is given below for a retail company (000 omitted). T
ID: 2557051 • Letter: A
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 Quarter (000 omitted) 4 Year Cash balance, beginning Add collections from customers Total cash available Less disbursements 114 92 29 Purchase of inventory Selling and administrative expenses Equipment purchases Dividends 53 63 30 28 2 45 127 8 2 2 Total disbursements Excess (deficiency) of cash available over disbursements Financing 119 Borrowings 13 (20) Repayments (including interest)* Total financing Cash balance, ending "Interest will total $1,000 for the yearExplanation / Answer
Answer
Working Equation Column
Q1
Q2
Q3
Q4
Year
A
Cash Balance, beginning
8
5
5
5
8
B
Add: Collection from customers
84
106
114
110
414
C=A+B
Total cash available
92
111
119
115
422
Less: Disbursement
D
Purchase of Inventory
53
63
54
29
199
E
Selling & Administrative expenses
30
45
30
22
127
F
Equipment purchases
8
9
28
10
55
G
Dividends
2
2
2
2
8
H=D+E+F+G
Total Disbursements
93
119
114
63
389
I=C-H
Excess (deficiency) of cash available over disbursements
-1
-8
5
52
33
Financing:
J
Borrowings
6
13
0
0
19
K
Repayments (including interest)
0
0
0
-20
-20
L=J+K
Total Financing
6
13
0
-20
-1
M=I+L
Cash Balance, ending
5
5
5
32
32
Working Equation Column
Q1
Q2
Q3
Q4
Year
A
Cash Balance, beginning
8
5
5
5
8
B
Add: Collection from customers
84
106
114
110
414
C=A+B
Total cash available
92
111
119
115
422
Less: Disbursement
D
Purchase of Inventory
53
63
54
29
199
E
Selling & Administrative expenses
30
45
30
22
127
F
Equipment purchases
8
9
28
10
55
G
Dividends
2
2
2
2
8
H=D+E+F+G
Total Disbursements
93
119
114
63
389
I=C-H
Excess (deficiency) of cash available over disbursements
-1
-8
5
52
33
Financing:
J
Borrowings
6
13
0
0
19
K
Repayments (including interest)
0
0
0
-20
-20
L=J+K
Total Financing
6
13
0
-20
-1
M=I+L
Cash Balance, ending
5
5
5
32
32
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