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4. A management accountant was working on a cash budget for Boone Company when he accidentally spilled his coffee. Some of the liquid splattered on his working papers, rendering a few of the amounts illegible. The budget with missing amounts indicated is provided below: Boone Company Cash Budget For the Quarter Ended March 31 January February March Section 1: Cash Receipts Beginning cash balance Add: Cash receipts $ (a) (f) 187,000 6,000 (k) 250,000 Total cash available $ 260,000 (g) (1) Section 2: Cash Payments For inventory purchases For S&A expenses For asset purchases For interest expenses $ 127,000 (b) 37,000 $ 113,000 67,000 37,000 $ 118,500 69,000 37,000 (m) Total disbursements $ 240,000 217,000 $ 225,170 Section 3: Financing Activities Surplus (shortage) Borrowing (repayments) Ending cash balance (c) (h) (i) (n) (p) The company desires to maintain an ending cash balance of at least $7,000 each month. In any month in which there is cash shortage, the company's bank will extend it a loan equal to the shortage amount. The loan is assumed to have been made on the last day of the month. Any time the company has a cash surplus it must repay as much of any outstanding loans as possible. The bank charges monthly interest of 1% on any outstanding loan balance. Required: Compute the missing amounts for items (a) through (p) (show work) (a) $ (i) $ (b) $ (j) $ (c) $ (k) $ (d) $ (1) $ (e) $ (m) $ (f) $ (n) $ (g) $ (0) $ (h) $ (p) S

4. A management accountant was working on a cash budget for Boone Company when he accidentally spilled his coffee. Some of the liquid splattered on his working papers, rendering a few of the amounts illegible. The budget with missing amounts indicated is provided below: Boone Company Cash Budget For the Quarter Ended March 31 January February March Section 1: Cash Receipts Beginning cash balance Add: Cash receipts $ (a) (f) 187,000 6,000 (k) 250,000 Total cash available $ 260,000 (g) (1) Section 2: Cash Payments For inventory purchases For S&A expenses For asset purchases For interest expenses $ 127,000 (b) 37,000 $ 113,000 67,000 37,000 $ 118,500 69,000 37,000 (m) Total disbursements $ 240,000 217,000 $ 225,170 Section 3: Financing Activities Surplus (shortage) Borrowing (repayments) Ending cash balance (c) (h) (i) (n) (p) The company desires to maintain an ending cash balance of at least $7,000 each month. In any month in which there is cash shortage, the company's bank will extend it a loan equal to the shortage amount. The loan is assumed to have been made on the last day of the month. Any time the company has a cash surplus it must repay as much of any outstanding loans as possible. The bank charges monthly interest of 1% on any outstanding loan balance. Required: Compute the missing amounts for items (a) through (p) (show work) (a) $ (i) $ (b) $ (j) $ (c) $ (k) $ (d) $ (1) $ (e) $ (m) $ (f) $ (n) $ (g) $ (0) $ (h) $ (p) S

FINANCIAL ACCOUNTING
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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4. A management accountant was working on a cash budget for Boone Company when he accidentally spilled his coffee. Some of the liquid splattered on his working papers, rendering a few of the amounts illegible. The budget with missing amounts indicated is provided below: Boone Company Cash Budget For the Quarter Ended March 31 January February March Section 1: Cash Receipts Beginning cash balance Add: Cash receipts 6,000 (f) 187,000 (k) 250,000 $ (а) $ 260,000 Total cash available (g) (1) Section 2: Cash Payments For inventory purchases For S&A expenses For asset purchases For interest expenses $ 113,000 $ 127,000 (b) $ 118,500 67,000 69,000 37,000 37,000 37,000 (m) Total disbursements $ 240,000 $ 217,000 $ 225,170 Section 3: Financing Activities Surplus (shortage) Borrowing (repayments) Ending cash balance (c) (d) (e) (h) (n) (p) The company desires to maintain an ending cash balance of at least $7,000 each month. In any month in which there is cash shortage, the company's bank will extend it a loan equal to the shortage amount. The loan is assumed to have been made on the last day of the month. Any time the company has a cash surplus it must repay as much of any outstanding loans as possible. The bank charges monthly interest of 1% on any outstanding loan balance. Required: Compute the missing amounts for items (a) through (p) (show work) (а) S (i) $ (b) $ (j) $ (c) $ (k) $ (d) $ (1) $ (e) $ (m) $ (f) $ (n) $ (g) $ (0) $ (h) $ (p) $
Transcribed Image Text:4. A management accountant was working on a cash budget for Boone Company when he accidentally spilled his coffee. Some of the liquid splattered on his working papers, rendering a few of the amounts illegible. The budget with missing amounts indicated is provided below: Boone Company Cash Budget For the Quarter Ended March 31 January February March Section 1: Cash Receipts Beginning cash balance Add: Cash receipts 6,000 (f) 187,000 (k) 250,000 $ (а) $ 260,000 Total cash available (g) (1) Section 2: Cash Payments For inventory purchases For S&A expenses For asset purchases For interest expenses $ 113,000 $ 127,000 (b) $ 118,500 67,000 69,000 37,000 37,000 37,000 (m) Total disbursements $ 240,000 $ 217,000 $ 225,170 Section 3: Financing Activities Surplus (shortage) Borrowing (repayments) Ending cash balance (c) (d) (e) (h) (n) (p) The company desires to maintain an ending cash balance of at least $7,000 each month. In any month in which there is cash shortage, the company's bank will extend it a loan equal to the shortage amount. The loan is assumed to have been made on the last day of the month. Any time the company has a cash surplus it must repay as much of any outstanding loans as possible. The bank charges monthly interest of 1% on any outstanding loan balance. Required: Compute the missing amounts for items (a) through (p) (show work) (а) S (i) $ (b) $ (j) $ (c) $ (k) $ (d) $ (1) $ (e) $ (m) $ (f) $ (n) $ (g) $ (0) $ (h) $ (p) $
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