x C A Cash Budget By Quar x eztomheducationcomhmtpx 00 point

x C A Cash Budget, By Quar x )ezto.mheducation.com/hm.tpx .00 points cash budget, by quarters, is given below for a retail company (000 omitted). The company requires a inimum cash balance of at least $5,000 to start each quarter. Fill in the missing amounts. (Enter your nswers in thousands of dollars. Cash deficiencies and Repayments should be indicated by a inus sign.) Cash Budget Quarter (000 omitted) Year ash balance, beginning dd collections from customers Total cash available ess disbursements 109 392 89 48 32 Purchase of inventory Selling and administrative expenses Equipment purchases Dividends 45 30 12 23 53 2 114 Total disbursements Excess (deficiency) of cash available over disbursements Financing: Borrowings 18 Repayments (including interest)* Total financing Cash balance, ending Interest will total $1,000 for the year (23)

Solution

Cash budget Quarter Total 1 2 3 4 Opening cash Balance                                     7.00                                   5.00                                              5.00                                           5.00                                     7.00 Add: Collection from Customers                                   82.00                                 96.00                                         109.00                                      105.00                                 392.00 $89 - $7 $101 - $5 $392 - ($82 + $96 + $109)                                          -   Total Cash available                                   89.00                              101.00                                         114.00                                      110.00                                 399.00 $114 - $13 Less: Disbursements Purchase of Inventory                                   48.00                                 58.00                                            51.00                                        32.00                                 189.00 $106 - ($30 + $23+ $2) Selling & Admn. Exp.                                   30.00                                 45.00                                            30.00                                        22.00                                 127.00 $91 - ($48 + $11 + $2) $127 - ($30 + $45 + $30) Equipment Purchases                                   11.00                                   9.00                                            23.00                                        10.00                                   53.00 $53 - ($11 + $9 + $23) Dividends                                     2.00                                   2.00                                              2.00                                           2.00                                     8.00 Total Disbursement                                   91.00                              114.00                                         106.00                                        66.00                                 377.00 $89 - $(2) $114 - $8 Excess (deficieny) of cash available over disbursements                                   (2.00)                              (13.00)                                              8.00                                        44.00                                   22.00 $(18) - $(5) Financing: Borrowings                                     7.00                                 18.00                                                   -                                                 -                                     25.00 $5 + $2                                        -   Repayments (including interest)                                          -                                          -                                              (3.00)                                      (23.00)                                 (26.00) Total Financing                                     7.00                                 18.00                                            (3.00)                                      (23.00)                                   (1.00) Cash Balance, ending                                     5.00                                   5.00                                              5.00                                        21.00                                   21.00