A cash budget, by quarters, is given below for a retail company (000 omitted). The company requires a minimum cash balance of at least $10,000 to start each quarter. Required: Fill in the missing amounts. Note: Enter your answers in thousands of dollers. Cash deficiencies and Repayments should be indicated by a minus sign. Quarter (000 omitted) (000 omitted) Year 2 Cash balance, beginning $ Add collections from customers 113 391 Total cash available 72 Less disbursements: Purchase of inventory 52 62 28 Selling and administrative expenses 45 30 106 Equipment purchases 15 6 27 61 Dividends 2 2 2 2 Total disbursements Excess (deficiency) of cash available over disbursements 118 (7) 11 Financing Borrowings Repayments (including interest) * Total financing Cash balance, ending "Interest will total $1,000 for the year. 14 (31)
A cash budget, by quarters, is given below for a retail company (000 omitted). The company requires a minimum cash balance of at least $10,000 to start each quarter. Required: Fill in the missing amounts. Note: Enter your answers in thousands of dollers. Cash deficiencies and Repayments should be indicated by a minus sign. Quarter (000 omitted) (000 omitted) Year 2 Cash balance, beginning $ Add collections from customers 113 391 Total cash available 72 Less disbursements: Purchase of inventory 52 62 28 Selling and administrative expenses 45 30 106 Equipment purchases 15 6 27 61 Dividends 2 2 2 2 Total disbursements Excess (deficiency) of cash available over disbursements 118 (7) 11 Financing Borrowings Repayments (including interest) * Total financing Cash balance, ending "Interest will total $1,000 for the year. 14 (31)
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 at
least $10,000 to start each quarter.
Required:
Fill in the missing amounts.
Note: Enter your answers in thousands of dollers. Cash deficiencies and Repayments should be indicated by a minus sign.
Quarter (000 omitted)
(000 omitted)
1
2
3
4
Year
Cash balance, beginning
$
7
Add collections from customers
113
391
Total cash available
72
Less disbursements:
Purchase of inventory
52
62
28
Selling and administrative expenses
45
30
106
Equipment purchases
15
9
27
61
Dividends
2
2
2
2
Total disbursements
118
Excess (deficiency) of cash available over disbursements
(7)
11
Financing:
Borrowings
Repayments (including interest)*
Total financing
Cash balance, ending
Interest will total $1,000 for the year.
14
(31)
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