A cash budget, by quarters, is given below for a retail company (000 omitted). The company requires a minimum cash balance of $6,000 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 $ 6 $ 6 $ 6 $ 6 Add collections from customers 80 104 370 Total cash available 86 376 Less disbursements: Purchase of inventory 43 53 35 Selling and administrative expenses 34 32 30 118 Equipment purchases 15 8 18 51 Dividends 2 2 2 2 Total disbursements Excess (deficiency) of cash available over disbursements 94 95 (8) 11 Financing: Borrowings Repayments (including interest) * Total financing 14 9 14 Cash balance, ending $ 6 $ 6 $ 6 "Interest will total $1,000 for the year. (19)
A cash budget, by quarters, is given below for a retail company (000 omitted). The company requires a minimum cash balance of $6,000 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 $ 6 $ 6 $ 6 $ 6 Add collections from customers 80 104 370 Total cash available 86 376 Less disbursements: Purchase of inventory 43 53 35 Selling and administrative expenses 34 32 30 118 Equipment purchases 15 8 18 51 Dividends 2 2 2 2 Total disbursements Excess (deficiency) of cash available over disbursements 94 95 (8) 11 Financing: Borrowings Repayments (including interest) * Total financing 14 9 14 Cash balance, ending $ 6 $ 6 $ 6 "Interest will total $1,000 for the year. (19)
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.
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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
$6,000 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 $
6 $
6 $
6
$
6
Add collections from customers
80
104
370
Total cash available
86
376
Less disbursements:
Purchase of inventory
43
53
35
Selling and administrative expenses
34
32
30
118
Equipment purchases
15
8
18
51
Dividends
2
2
2
2
Total disbursements
Excess (deficiency) of cash available over disbursements
94
95
(8)
11
Financing:
Borrowings
Repayments (including interest) *
Total financing
14
9
14
Cash balance, ending
$
6
$
6
$
6
"Interest will total $1,000 for the year.
(19)
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