A cash budget, by quarters, is given below for a retail company (000 omitted). The company requires a minimum cash balance of at least $4,000 to start each quarter. Required: 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 3 4 Year Cash balance, beginning $ 6 $ 6 Add collections from customers 108 369 Total cash available 69 Less disbursements: Purchase of inventory 47 57 31 Selling and administrative expenses 32 30 98 Equipment purchases 10 9 22 51 Dividends 2 2 2 2 Total disbursements 100 Excess (deficiency) of cash available over disbursements (5) 7 Financing: Borrowings Repayments (including interest) * Total financing Cash balance, ending *Interest will total $1,000 for the year. 6 (13)
A cash budget, by quarters, is given below for a retail company (000 omitted). The company requires a minimum cash balance of at least $4,000 to start each quarter. Required: 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 3 4 Year Cash balance, beginning $ 6 $ 6 Add collections from customers 108 369 Total cash available 69 Less disbursements: Purchase of inventory 47 57 31 Selling and administrative expenses 32 30 98 Equipment purchases 10 9 22 51 Dividends 2 2 2 2 Total disbursements 100 Excess (deficiency) of cash available over disbursements (5) 7 Financing: Borrowings Repayments (including interest) * Total financing Cash balance, ending *Interest will total $1,000 for the year. 6 (13)
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
H8
Transcribed Image Text:A cash budget, by quarters, is given below for a retail company (000 omitted). The company requires a minimum cash balance of at
least $4,000 to start each quarter.
Required:
Fill in the missing amounts. (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
1
CO
6
69
Quarter (000 omitted)
(000 omitted)
2
3
4
Year
108
369
Less disbursements:
Purchase of inventory
47
57
31
Selling and administrative expenses
32
30
98
Equipment purchases
10
9
22
51
Dividends
2
2
2
2
Total disbursements
Excess (deficiency) of cash available over
100
(5)
7
disbursements
Financing:
Borrowings
Repayments (including interest) *
Total financing
Cash balance, ending
*Interest will total $1,000 for the year.
Co
6
(13)
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