A cash budget, by quarters, is given below for a retail company (000 omited). Th

Question

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) Answer is not complete. Cash Budget Quarter (000 omitted) Year Cash balance, beginning Add collections from customers Total cash available Less disbursements 8086 10400370 00910 109 105 370 Purchase of inventory Seling and administrative expenses Equipment purchases 43 34?32 15 4935 30 18 180 22 118 10 5 Total disbursements Excess (deficiency) of cash available over 94 69 357 36 19 (4)?10 13 0 Repayments (indluding interest) Total financing Cash balance, ending Interest will botal $1,000 for the year (5)(18) 17 8 13 22 0 503 505 1805 18 0 8 9 889 3 4

Explanation / Answer

Cash Budget Quarter 1 2 3 4 Year Excess or deficency of cash over disbursments -8 -4 10 36 19 Financing Borrowings 13 9 Repayments 0 0 -5 -18 -23 Total Financing 13 9 -5 -18 -1 Cash Balance ending 5 5 5 18 18 repayments for 4th quarter = 13+9-5+1(interest) = 18

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