### Educational Resource: Understanding Cash Budgeting#### Introduction to Cash BudgetingA cash budget is an estimate of cash inflows and outflows for a business over a specific period. It helps businesses ensure they have enough cash to cover their operations and identify any potential shortfalls. Below is a detailed cash budget for a retail company, broken down by quarters, with certain values that need to be filled. Understanding each component is crucial to grasp how a cash budget helps in financial planning.#### Cash Budget BreakdownThe company's cash budget for the year is divided into four quarters. The amounts are presented in thousands of dollars, and the company requires maintaining a minimum cash balance of $8,000 at the start of each quarter.#### Cash Budget Table| **Description** | **Quarter 1** | **Quarter 2** | **Quarter 3** | **Quarter 4** | **Year** ||-----------------------------------------------------------|---------------|---------------|---------------|---------------|-----------|| **Cash balance, beginning** | $6 | $ 8 | $8 | $8 | $30 || **Add collections from customers** | 73 | 110 | 120 | 112 | 415 || **Total cash available** | 79 | 118 | 128 | 120 | 445 || **Less disbursements:** | | | | | || - Purchase of inventory | 55 | 65 | 55 | 31 | 206 || - Selling and administrative expenses | 20 | 45 | 30 | 24 | 119 || - Equipment purchases | 2 | 10 | 1 | 12 | 25 || - Dividends | 0 | 0 | 21 | 0 | 21 || **Total disbursements** | 77 | 120 | 107 | 67 | 371 || **Excess (deficiency) of cash available over disbursements** | 2 | (3) | 21 | 53 | 50 || **Financing:** | | | | | |

Cash Budget:- A Cash budget is a detailed estimate of the cash receipt from all sources and cash…

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. Fill in the missing amounts. (Enter your answers in thousands of dollars. Cash deficiencies and Repayments should be indicated by a minus sign.) Answer is complete but not entirely correct. Quarter 2 Quarter 1 (000 omitted) Quarter 3 (000 Quarter 4 (000 (000 Year (000 omitted) omitted) omitted) omitted) Cash balance, beginning S $ 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. S 6 73 79 55 20->> 13 2 90- (11) 19 S 00 8 $ 19 8 110 118 65 45 9 2 121 (3) ✔ 11 110 S 8 S 8 120 128✔ 55 30 30 2 117 11 00 (3) S 8 S 8 112 120 → 31 240 100 2 67- 53✔ 00 (28)✔ 25 $ 30 X 415 445 206 119 62 80 395 50 X 30→ (31) ✔ (1) ► 40 x

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. Fill in the missing amounts. (Enter your answers in thousands of dollars. Cash deficiencies and Repayments should be indicated by a minus sign.) Answer is complete but not entirely correct. Quarter 2 Quarter 1 (000 omitted) Quarter 3 (000 Quarter 4 (000 (000 Year (000 omitted) omitted) omitted) omitted) Cash balance, beginning S $ 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. S 6 73 79 55 20->> 13 2 90- (11) 19 S 00 8 $ 19 8 110 118 65 45 9 2 121 (3) ✔ 11 110 S 8 S 8 120 128✔ 55 30 30 2 117 11 00 (3) S 8 S 8 112 120 → 31 240 100 2 67- 53✔ 00 (28)✔ 25 $ 30 X 415 445 206 119 62 80 395 50 X 30→ (31) ✔ (1) ► 40 x

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

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. 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. Quarter 1 (000 omitted) $ 9 97 54 7 2 (5) Quarter 2 (000 omitted) 64 45 9 2 120 12 Quarter 3 (000 omitted) 124 30 29 2 12 Quarter 4 (000 omitted) 30 2 (12) Year (000 omitted) 431 137 55
am. 116.
QOPPC company chief accountant has provided you with the following information relating to the next budget period. Expenses: (in GH¢) October November December Selling & distribution 20,000 30,000 34,000 General & administration 15,000 18,000 12,000 Bad debts 21,000 15,000 20,000 Rate 8,000 6,000 10,000 Interest charges 1,600 2,000 2,400 Depreciation expenses 30,000 10,000 10,000 Expenses are payable in the month of incurrence. 2. A contingent liability of GH¢10,000 is expected to mature in November 3. Estimated cash balance at the end of September will be GH¢5000. Cash balances should not be less than GH¢10,000. Cash can be borrowed in multiples of GH¢10,000 to finance any deficit at an interest rate of 15% per annum. 4. The sales manager's salary, which is GH¢ 7000 per month is expected to increase by GH¢1,000 every month after June 5. Motor vehicle will be purchased in November at GH¢240,000.…
Do not give answer in image formate
The excess (deficiency) of cash available over disbursements for December would be: P40,400 P68,600 P28,200 P12,200
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. 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 6 69 47 10 2 (5) Quarter (000 omitted) 2 3 57 32 9 2 100 6 108 30 22 2 7 4 31 2 (13) (000 omitted) Year 369 98 51
Please don't answer in handwritten..thanku
Please do not give solution in image format thanku
Am. 1113.
M3. Midland Company is preparing a cash budget for august. The company had $17,100 cash at the begining of August and anicipates $121,000 in cash receipts and $134,700 in cash payments during August. Midland company wants to maintain a minimum cash balance of $10,000. To mainatain the minimum cash balance of $10,000, the company must borrow.
Hardev
Please help solve steps