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 Quarter (000 omitted) Year Cash balance, beginning Add collections from customers Total cash available Less disbursements: 103 347 70 42 Purchase of inventory Selling and administrative expenses Equipment purchases Dividends 52 34 32 30 103 14 17 49 94 Total disbursements Excess (deficiency) of cash available over disbursements Financing: Borrowing:s 10 Repayments (including interest) Total financing Cash balance, ending "Interest will total $1,000 for the year (18)

Explanation / Answer

Q1 Q2 Q3 Q4 Total Begging balance 9 5 5 5 24 Cash Receipts: Cash collected from customers 61 84 103 99 347 Total cash available 70 89 108 104 371 Cash Payments: Purchase of inventory 42 52 48 34 176 Selling and administrative expenses 20 32 30 21 103 Equipment purchase 14 8 17 10 49 Dividends 2 2 2 2 8 Total cash disbursement 78 94 97 67 336 Excess/deficiency of cash available over disbarment -8 -5 11 37 Financing activity: Borrowings 13 10 23 Repayment including interest -6 -18 -24 Total Financing Closing balance 5 5 5 19 34

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