A cash budget, by quarters, is given below for a retail company (000 omitted). The company requires a minimum cash balance of $3,000 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. Cash balance, beginning 9 Quarter (000 omitted) (000 omitted) Year Add collections from customers 107 379 Total cash available 86 Less disbursements: Purchase of inventory 46 56 30 Selling and administrative expenses 32 Equipment purchases 13 21 30 109 9 21 69 53 Dividends 2 2 2 2 99 (2) 7 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. 7 (9)
A cash budget, by quarters, is given below for a retail company (000 omitted). The company requires a minimum cash balance of $3,000 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. Cash balance, beginning 9 Quarter (000 omitted) (000 omitted) Year Add collections from customers 107 379 Total cash available 86 Less disbursements: Purchase of inventory 46 56 30 Selling and administrative expenses 32 Equipment purchases 13 21 30 109 9 21 69 53 Dividends 2 2 2 2 99 (2) 7 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. 7 (9)
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.
Question
![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
$3,000 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)
2
3
Cash balance, beginning
$
9
Add collections from customers
107
Total cash available
86
Less disbursements:
(000 omitted)
Year
379
Purchase of inventory
46
56
30
Selling and administrative expenses
32
30
109
Equipment purchases
13
9
21
53
Dividends
2
2
2
2
99
(2)
7
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.
7
(9)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F95c56668-3561-473f-b316-c0a6a676416d%2F65bac49d-e395-4a3c-959b-1eaea1d7b0ba%2Fs046eo_processed.png&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
$3,000 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)
2
3
Cash balance, beginning
$
9
Add collections from customers
107
Total cash available
86
Less disbursements:
(000 omitted)
Year
379
Purchase of inventory
46
56
30
Selling and administrative expenses
32
30
109
Equipment purchases
13
9
21
53
Dividends
2
2
2
2
99
(2)
7
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.
7
(9)
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