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.
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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Exercise 8-11 (Algo) Cash Budget Analysis [LO8-8]
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
Add collections from customers
104
370
Total cash available
86
Less disbursements.
Purchase of inventory
43
53
35
Selling and administrative expenses
32
30
118
Equipment purchases
15
8
18
51
Dividends
2
2
2
2
Total disbursements
Excess (deficiency) of cash available over disbursements
95
(8)
11
Financing:
Borrowings
Repayments (including interest) *
Total financing
Cash balance, ending
*Interest will total $1,000 for the year.
19
(19)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8a6c8a2f-a6b8-45a6-a8ab-f7d9e54ba089%2F5d584ddb-05de-4237-b651-db222da63a62%2Fwo6be97_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise 8-11 (Algo) Cash Budget Analysis [LO8-8]
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
Add collections from customers
104
370
Total cash available
86
Less disbursements.
Purchase of inventory
43
53
35
Selling and administrative expenses
32
30
118
Equipment purchases
15
8
18
51
Dividends
2
2
2
2
Total disbursements
Excess (deficiency) of cash available over disbursements
95
(8)
11
Financing:
Borrowings
Repayments (including interest) *
Total financing
Cash balance, ending
*Interest will total $1,000 for the year.
19
(19)
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