Exercise 8-11 (Algo) Cash Budget Analysis [LO8-8]A cash budget, by quarters, is given below for a retail company (000 omitted). The company requires a minimum cash balance of$3,000 to start each quarter.Required:Fill in the missing amounts.Note: Enter your answers in thousands of dollars. Cash deficiencies and Repayments should be indicated by a minus sign.Cash balance, beginningAdd collections from customersTotal cash availableLess disbursements:Quarter (000 omitted)(000 omitted)234Year894110400Purchase of inventory4949593333Selling and administrative expenses4530130Equipment purchases1292455Dividends2222Total disbursements115Excess (deficiency) of cash available over(1)5disbursementsFinancing:BorrowingsRepayments (including interest) *Total financingCash balance, ending*Interest will total $1,000 for the year.17(20)

Ending cash balance is based on Beginning cash balance plus Cash receipts less Cash disbursements…

A cash budget, by quarters, is given below for a retail company (000 omitted). The company requires a minimum cash balance of $3,000 to start each quarter. Required: Fill in the missing amounts. Note: Enter your answers in thousands of dollars. Cash deficiencies and Repayments should be indicated by a minus sign. Quarter (000 omitted) (000 omitted) 1 2 3 4 Year Cash balance, beginning $ 8 Add collections from customers 110 400 Total cash available 94 Less disbursements: Purchase of inventory 49 59 33 Selling and administrative expenses 45 30 130 Equipment purchases 12 9 24 55 Dividends 2 2 2 2 Total disbursements 115 Excess (deficiency) of cash available over (1) 5 disbursements Financing: Borrowings 17 Repayments (including interest)* Total financing Cash balance, ending *Interest will total $1,000 for the year. (20)

A cash budget, by quarters, is given below for a retail company (000 omitted). The company requires a minimum cash balance of $3,000 to start each quarter. Required: Fill in the missing amounts. Note: Enter your answers in thousands of dollars. Cash deficiencies and Repayments should be indicated by a minus sign. Quarter (000 omitted) (000 omitted) 1 2 3 4 Year Cash balance, beginning $ 8 Add collections from customers 110 400 Total cash available 94 Less disbursements: Purchase of inventory 49 59 33 Selling and administrative expenses 45 30 130 Equipment purchases 12 9 24 55 Dividends 2 2 2 2 Total disbursements 115 Excess (deficiency) of cash available over (1) 5 disbursements Financing: Borrowings 17 Repayments (including interest)* Total financing Cash balance, ending *Interest will total $1,000 for the year. (20)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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 1 Quarter 2 (000 omitted) (000 omitted) 8 Quarter 3 (000 omitted) Quarter 4 (000 omitted) Year (000 omitted) Cash balance, beginning $ Add collections from customers 120 Total cash available 92 Less disbursements: Purchase of inventory 53 63 29 Selling and administrative expenses 45 30 Equipment purchases 8 28 Dividends 2 Total disbursements Excess (deficiency) of cash available over disbursements (1) Financing: Borrowings Repayments (including interest)* Total financing Cash balance, ending *Interest will total $1,000 for the year. 9 2 119 13 2 9 2 (12) 420 127 55
ces A cash budget, by quarters, is given below for a retail company (000 omitted). The company requires a minimum cash balance of at least $10,000 to start each quarter. Required: Fill in the missing amounts. (Enter your answers in thousands of dollars. Cash deficiencies and Repayments should be indicated by a minus sign.) Cash balance, beginning Add collections from customers Total cash available Less disbursements. Purchase of inventory Selling and administrative expenses Equipment purchases Dividends Total disbursements Excess (deficiency) of cash available over disbursements Financing: Borrowings Repayments (including interest) * Total financing Cash balance, ending *Interest will total $1,000 for the year. $ 1 9 71 80 50 13 2 (5) Quarter (000 omitted) 2 3 60 45 9 2 116 16 111 30 25 2 12 4 34 2 (30) (000 omitted) Year 389 119 57
A cash budget, by quarters, is given below for a retail company (000 omitted). The company requires a minimum cash balance of $4,000 to start each quarter. Required: Fill in the missing amounts. Note: Enter your answers in thousands of dollars. Cash deficiencies and Repayments should be indicated by a minus sign. Cash balance, beginning Add collections from customers Total cash available Less disbursements: Quarter (000 omitted) (000 omitted) 1 2 3 4 Year 6 $ 4 $ 4 $ 4 6 Assessment Tool iFrame 63 96 108 104 369 69 100 112 108 375 Purchase of inventory 47 Selling and administrative expenses 15 530 57 51 31 186 32 30 21 98 Equipment purchases 10 9 22 10 51 Dividends 2 2 2 2 8 Total disbursements Excess (deficiency) of cash available over disbursements 74 100 105 64 343 (5) (1) 7 44 32 Financing: Borrowings Repayments (including interest) * Total financing 9 6 14 (2) (13) (15) 9 6 (2) (13) (1) Cash balance, ending $ 4 $ 4 $ EA 5 31 31 *Interest will total $1,000 for the year.
Exercise 8-11 (Algo) Cash Budget Analysis [LO8-8] A cash budget, by quarters, is given below for a retail company (000 omitted). The company requires a minimum cash balance of $3,000 to start each quarter. Required: Fill in the missing amounts. Note: Enter your answers in thousands of dollars. Cash deficiencies and Repayments should be indicated by a minus sign. Cash balance, beginning Add collections from customers Total cash available Less disbursements: Purchase of inventory Selling and administrative expenses Equipment purchases Dividends Total disbursements Excess (deficiency) of cash available over disbursements Financing: Borrowings Repayments (including interest) * Total financing Cash balance, ending *Interest will total $1,000 for the year. $ 1 8 77 45 7 2 (2) Quarter (000 omitted) 2 3 55 32 8 2 97 7 106 30 20 2 7 4 29 2 (000 omitted) Year 367 111 45
A cash budget, by quarters, is given below for a retail company (000 omitted). The company requires a minimum cash balance of at least $8,000 to start each quarter. Required: Fill in the missing amounts. Note: Enter your answers in thousands of dollars. Cash deficiencies and Repayments should be indicated by a minus sign. 1 Quarter (000 omitted) (000 omitted) 2 3 4 Year Cash balance, beginning $ 9 Add collections from customers 61 103 347 Total cash available 70 Less disbursements: Purchase of inventory 42 52 34 Selling and administrative expenses 32 30 103 Equipment purchases 14 8 17 49 Dividends Total disbursements Excess (deficiency) of cash available over disbursements 2 2 2 94 (8) 14 Financing: Borrowings Repayments (including interest)* Total financing 10 (21)
are available for the months April through June, during which the loan will be used: a. On April 1, the start of the loan period, the cash balance will be $26,800. Accounts receivable on April 1 will total $193,200, of which $165,600 will be collected during April and $22,080 will be collected during May. The remainder will be uncollectible. b. Past experience shows that 30% of a month's sales are collected in the month of sale, 60% in the month following sale, and 8% in the second month following sale. The other 2% is bad debts that are never collected. Budgeted sales and expenses for the three- month period follow: Sales (all on account) Merchandise purchases Payroll Lease payments Advertising Equipment purchases Depreciation April $360,000 $ 275,000 $32,000 $ 38,400 $ 73,000 $0 $ 15,400 Required 1 Required 2 May $ 582,000 $ 227,000 $ 32,000 $ 38,400 $ 73,000 $0 $ 15,400 c. Merchandise purchases are paid in full during the month following purchase. Accounts payable for merchandise…
A cash budget, by quarters, is given below for a retail company (000 omitted). The company requires a minimum cash balance of $4,000 to start each quarter. Required: Fill in the missing amounts. Note: Enter your answers in thousands of dollars. Cash deficiencies and Repayments should be indicated by a minus sign. Quarter (000 omitted) 2 3 (000 omitted) Year Cash balance, beginning $ $ 5 $ $ $ 6 Add collections from customers 63 95 108 369 Total cash available 69 100 375 Less disbursements: Purchase of inventory 47 57 31 Selling and administrative expenses 15 32 30 98 Equipment purchases 10 9 22 51 Dividends Total disbursements Excess (deficiency) of cash available over disbursements Financing: Borrowings Repayments (including interest)* Total financing 2 2 2 2 74 100 (5) (13) Cash balance, ending $ "Interest will total $1,000 for the year.
A cash budget, by quarters, is given below for a retall company (000 omitted). The company requires a minimum cash balance of at least $6,000 to start each quarter. Required: Fill in the missing amounts. (Enter your answers in thousands of dollars. Cash deficiencies and Repayments should be indicated by a minus sign.) Cash balance, beginning Add collections from customers Total cash available Less disbursements: Purchase of inventory Selling and administrative expenses Equipment purchases Dividends Total disbursements Excess (deficiency) of cash available over disbursements Financing: Borrowings Repayments (including interest) Total financing Cash balance, ending interest will total $1,000 the Quarter 1 (000 omitted) $ 6 S 80 86 43 34 15 Quarter 2 (000 omitted) 2 94 (8) 6 S 53 32 8 2 Quarter 3 (000 omitted) 95 6 104 110 30 18 2 11 Quarter 4 (000 omitter) $ 35 10 2 (10) Year (000 omitted) $ 6 370 118 51 8
A cash budget, by quarters, is given below for a retail company (000 omitted). The company requires a minimum cash balance of at least $4,000 to start each quarter. Fill in the missing amounts. Note: Enter your answers in thousands of dollars. Cash deficiencies and Repayments should be indicated by a minus sign. Quarter (000 omitted) (000 omitted) 1 2 3 4 Year Cash balance, beginning $ 7 Add collections from customers 109 392 Total cash available 89 Less disbursements: * Purchase of inventory 48 58 32 Selling and administrative expenses 45 30 127 Equipment purchases 11 9 23 53 Dividends 2 2 2 2 Total disbursements 114 Excess (deficiency) of cash available over disbursements (2) 7 Financing: Borrowings Repayments (including interest) * Total financing Cash balance, ending "Interest will total $1,000 for the year. 18 (22)
A cash budget, by quarters, is given below for a retail company. (000 omitted) company requires a minimum cash balance of at least Br 5,000to start each quarter. Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year Cash balance, beginning 6 ? ? ? ? Add collections from customers ? ? 96 ? 323 Total cash available 71 ? ? ? ? Less disbursement: Purchase inventory 35 45 ? 35 ? Operating expense ? 30 30 ? 113 Equipment purchase 8 8 10 ? 36 Dividends 2 2 2 2 ? Total disbursement ? 85 ? ? ? Excess (deficiency) of each cash (2) ? 11 ? ? Financing: Borrowing ? 15 - - ? Repayments (including interest) - - ? (17) ? Total financing ? ? ? ? ? Cash balance, ending ? ? ? ? ?
Required: glored. 00. nidam aillim olgmoo Using Schedule 1 as your guide, prepare a schedule of expected cash collections from sales, 1. to vilidaliavs b by month and in total, for the second quarter. 2. What is the accounts receivable balance on June 30th? EXERCISE 8–2 Production Budget L08-3 Down Under Products, Ltd., of Australia has budgeted sales of its popular boomerang for the nay four months as follows: qlan nig Unit Sales oism oq April.... May .. June.... 50,000 bo 75,000 lloe be 90,000 .00A88 80,000 lo iben o ao wol July ... The company is now in the process of preparing a production budget for the second quarter. Past experience has shown that end-of-month inventory levels must equal 10% of the following month s unit sales. The inventory at the end of March was 5,000 units. Required: Using Schedule 2 as your guide, prepare a production budget by month and in total, for the second quarter. bottle of Mink Caress, a very popular perfume made eted pro- EXERCISE 8–3 Direct…
A cash budget, by quarters, is given below for a retail company (000 omitted). The company requires a minimum cash balance of $8,000 to start each quarter. Required: Fill in the missing amounts. Note: Enter your answers in thousands of dollars. Cash deficiencies and Repayments should be indicated by a minus sign. Cash balance, beginning Add collections from customers Total cash available Less disbursements: Purchase of inventory Selling and administrative expenses Equipment purchases Dividends Total disbursements Excess (deficiency) of cash available over disbursements Financing: Borrowings Repayments (including interest)" Total financing $ 9 87 38 10 2 (2) Quarter (000 omitted) 2 3 48 30 10 2 90 14 99 30 13 2 16 30 2 (17) (000 omitted) Year 348 121 43