A cash budget, by quarters, is given below for a retail company (000 omitted). The company requires a minimum cash balance of at least $5,000 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 (000 omitted) (000 omitted) 2 4 Year Cash balance, beginning $ 6 Add collections from customers 96 323 Total cash available 71 Less disbursements: Purchase of inventory 35 45 35 Selling and administrative expenses 30 30 113 Equipment purchases 8 8 10 36 Dividends 2 2 2 Total disbursements 85 Excess (deficiency) of cash available over |disbursements Financing: (2) 11 Borrowings 15 Repayments (including interest)* (17) Total financing Cash balance, ending *Interest will total $1,000 for the year.
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.
![A cash budget, by quarters, is given below for a retail company (000 omitted). The company requires a minimum cash balance of at
least $5,000 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 (000 omitted)
(000 omitted)
1
2
4
Year
Cash balance, beginning
6.
Add collections from customers
96
323
Total cash available
71
Less disbursements:
Purchase of inventory
35
45
35
Selling and administrative expenses
30
30
113
Equipment purchases
8
8
10
36
Dividends
2
2
Total disbursements
85
Excess (deficiency) of cash available over
disbursements
(2)
11
Financing:
Borrowings
15
Repayments (including interest)*
(17)
Total financing
Cash balance, ending
*Interest will total $1,000 for the year.
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