Check my work A cash budget, by quarters, is given below for a retail company (0
ID: 2404400 • Letter: C
Question
Check my work A cash budget, by quarters, is given below for a retail company (000 omitted). The company requires a minimum cash balance of at least $3,000 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.) Quarter (000 omitted) Year Cash balance, beginning Add collections from customers Total cash available Less disbursements: ok nt 124 431 97 nces Purchase of inventory Selling and administrative expenses Equipment purchases Dividends 54 64 30 45 30 137 29 Total disbursements Excess (deficiency) of cash available over disbursements Financing 120 12 Borrowings 12 (12) Repayments (including interest) Total financing Cash balance, ending Interest will total $1,000 for the yearExplanation / Answer
Cash budget :
Quarters Year 1 2 3 4 Cash balance, beginning 9 3 3 3 9 Add: Collections from customers 88 108 124 111 431 Total cash available 97 111 127 114 440 Less: Cash disbursments Purchase of inventory 54 64 54 30 202 Selling and administrative expenses 39 45 30 23 137 Equipment purchases 7 9 29 10 55 Dividend 2 2 2 2 8 Total disbursements 102 120 115 65 402 Excess(deficiency) of cash available over disbursement (5) (9) 12 49 38 Financing : Borrowings 8 12 20 Repayments (including interest) (9) (12) (21) Total financing 8 12 (9) (12) (1) Cash balance ending 3 3 3 37 37