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. Quarter (000 omitted) (000 omitted) 1 2 3 4 Year Cash balance, beginning $ 6 Add collections from customers 120 415 Total cash available 79 Less disbursements Purchase of inventory 55 65 31 Selling and administrative expenses 45 30 119 Equipment purchases 13 9 30 62 Dividends 2 2 2 2 121 (11) 11 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. 11 (28)
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. Quarter (000 omitted) (000 omitted) 1 2 3 4 Year Cash balance, beginning $ 6 Add collections from customers 120 415 Total cash available 79 Less disbursements Purchase of inventory 55 65 31 Selling and administrative expenses 45 30 119 Equipment purchases 13 9 30 62 Dividends 2 2 2 2 121 (11) 11 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. 11 (28)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
Transcribed Image Text: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.
Quarter (000 omitted)
(000 omitted)
1
2
3
4
Year
Cash balance, beginning
$
6
Add collections from customers
120
415
Total cash available
79
Less disbursements
Purchase of inventory
55
65
31
Selling and administrative expenses
45
30
119
Equipment purchases
13
9
30
62
Dividends
2
2
2
2
Total disbursements
121
Excess (deficiency) of cash available over disbursements
(11)
11
Financing
Borrowings
11
Repayments (including interest)
(28)
Total financing
Cash balance, ending
*Interest will total $1,000 for the year.
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