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)
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
![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:
Quarter (000 omitted)
(000 omitted)
2
3
4
Year
8
94
110
400
Purchase of inventory
49
49
59
33
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
Repayments (including interest) *
Total financing
Cash balance, ending
*Interest will total $1,000 for the year.
17
(20)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F90c71db2-fa78-44fd-9f07-bef789a572ce%2Fe551c1eb-e7ce-42e5-a55a-cf61ee239e4c%2Fyat4dub_processed.png&w=3840&q=75)
Transcribed Image Text: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:
Quarter (000 omitted)
(000 omitted)
2
3
4
Year
8
94
110
400
Purchase of inventory
49
49
59
33
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
Repayments (including interest) *
Total financing
Cash balance, ending
*Interest will total $1,000 for the year.
17
(20)
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