The monthly cash budgets for the first quarter of 2022 follow ($000 omitted) for Tuscano Manufacturing Company. A minimum cash balance of $21,000 is required to start each month, and a $50,000 line of credit has been arranged with a local bank at a 14% interest rate. Required: Calculate the missing amounts. (Hint: The total cash available includes collections from customers for all three months, plus the beginning cash balance from January 1, 2022.) Note: Enter your answers in thousands rounded to 2 decimal places. (i.e., 20,550 should belentered as 20.55). Use 360 days a year for calculations.

Entrepreneurial Finance
6th Edition
ISBN:9781337635653
Author:Leach
Publisher:Leach
Chapter6: Managing Cash Flow
Section: Chapter Questions
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The monthly cash budgets for the first quarter of 2022 follow ($000 omitted) for Tuscano Manufacturing Company. A minimum
cash balance of $21,000 is required to start each month, and a $50,000 line of credit has been arranged with a local bank at a
14% interest rate.
Required:
Calculate the missing amounts. (Hint: The total cash available includes collections from customers for all three months, plus the
beginning cash balance from January 1, 2022)
Note: Enter your answers in thousands rounded to 2 decimal places. (i.e., 20,550 should belentered as 20.55). Use 360
days a year for calculations.
Cash balance, beginning
Add collections from customers
Total cash available
Less disbursements
Purchase of inventory
Operating expenses
Capital additions
Payment of dividends
Total disbursements
Excess (deficiency) of cash available over disbursements
Borrowings
Repayments (including interest)
Cash balance, ending
January
$
S
26.00
92.00
28.00
32.00
5 (16.00)
February
5
Lia
$
$
105.00
62.00 $
8.00
81
105.00 $
21.00
$ 158.00 $
55
March
49.00
$ 26.00
85.00 $
73.00
Total
S
334.00
42.00
9.00
298.00
34.71
Transcribed Image Text:The monthly cash budgets for the first quarter of 2022 follow ($000 omitted) for Tuscano Manufacturing Company. A minimum cash balance of $21,000 is required to start each month, and a $50,000 line of credit has been arranged with a local bank at a 14% interest rate. Required: Calculate the missing amounts. (Hint: The total cash available includes collections from customers for all three months, plus the beginning cash balance from January 1, 2022) Note: Enter your answers in thousands rounded to 2 decimal places. (i.e., 20,550 should belentered as 20.55). Use 360 days a year for calculations. Cash balance, beginning Add collections from customers Total cash available Less disbursements Purchase of inventory Operating expenses Capital additions Payment of dividends Total disbursements Excess (deficiency) of cash available over disbursements Borrowings Repayments (including interest) Cash balance, ending January $ S 26.00 92.00 28.00 32.00 5 (16.00) February 5 Lia $ $ 105.00 62.00 $ 8.00 81 105.00 $ 21.00 $ 158.00 $ 55 March 49.00 $ 26.00 85.00 $ 73.00 Total S 334.00 42.00 9.00 298.00 34.71
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