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. Fill in the missing amounts. (Enter your answers in thousands of dollars. Cash deficiencies and Repayments should be indicated by a minus sign.) Quarter 1 (000 omitted) Quarter 2 Quarter 3 (000 omitted) (000 omitted) Quarter 4 Year (000 (000 omitted) omitted) Cash balance, beginning S 8 Add collections from customers 120 Total cash available 92 Less disbursements: 53 63 29 45 Purchase of inventory Selling and administrative expenses Equipment purchases Dividends Total disbursements Excess (deficiency) of cash available over disbursements Fingering 8 2 (1) 9 2 119 30 28 2 9 2 420 127 55
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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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. Fill in the missing amounts. (Enter your answers in thousands of dollars. Cash deficiencies and
Repayments should be indicated by a minus sign.)
Quarter 1 Quarter 2
(000 omitted) (000 omitted)
8
Quarter 3
(000 omitted)
Quarter 4
(000 omitted)
Year (000
omitted)
Cash balance, beginning
$
Add collections from customers
120
Total cash available
92
Less disbursements:
Purchase of inventory
53
63
29
Selling and administrative expenses
45
30
Equipment purchases
8
28
Dividends
2
Total disbursements
Excess (deficiency) of cash available over disbursements
(1)
Financing:
Borrowings
Repayments (including interest)*
Total financing
Cash balance, ending
*Interest will total $1,000 for the year.
9
2
119
13
2
9
2
(12)
420
127
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