A cash budget, by quarters, is given below for a retail company (000 omitted). The company requires a minimum cash balance of $4,000 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 $ 4 $ 4 $ 4 $ 6 Assessment Tool iFrame Add collections from customers 63 96 108 104 369 Total cash available 69 100 112 108 375 Less disbursements: Purchase of inventory 47 57 51 31 186 Selling and administrative expenses 15 32 30 21 98 Equipment purchases 10 9 22 10 51 Dividends 2 2 2 2 8 Total disbursements Excess (deficiency) of cash available over disbursements 74 100 (5) (1) 38 105 64 343 7 44 32 Financing: Borrowings Repayments (including interest)* 9 6 14 (2) (13) (15) Total financing 9 6 (2) (13) (1) Cash balance, ending $ 4 $ 4 $ 5 $ 31 $ 31 *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
$4,000 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
Add collections from customers
Total cash available
Less disbursements:
Quarter (000 omitted)
(000 omitted)
1
2
3
4
Year
6
$
4 $
4
$
4
6
Assessment Tool iFrame
63
96
108
104
369
69
100
112
108
375
Purchase of inventory
47
Selling and administrative expenses
15
530
57
51
31
186
32
30
21
98
Equipment purchases
10
9
22
10
51
Dividends
2
2
2
2
8
Total disbursements
Excess (deficiency) of cash available over disbursements
74
100
105
64
343
(5)
(1)
7
44
32
Financing:
Borrowings
Repayments (including interest) *
Total financing
9
6
14
(2)
(13)
(15)
9
6
(2)
(13)
(1)
Cash balance, ending
$
4
$
4
$
EA
5
31
31
*Interest will total $1,000 for the year.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F289cadc7-8fcf-4489-a367-33df1a91e448%2F99606e09-8d2e-43cb-9578-8b26c286bb65%2Fturx4g_processed.png&w=3840&q=75)
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