A cash budget, by quarters, is given below for a retail company (000 omitted). The company requires a minimum cash balance of at least $8,000 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. Year Cash balance, beginning Add collections from customers Total cash available %24 6. 99 348 87 Less disbursements: ices Purchase of inventory 38 48 30 Selling and administrative expenses 30 30 121 Equipment purchases 10 10 13 43 Dividends 2 2 Total disbursements Excess (deficiency) of cash available over disbursements Financing: 90 (2) 16 Borrowings 14 Repayments (including interest) (17) Total financing Cash balance, ending "Interest will total $1,000 for the year. < Prev 5 of 15 raw Next > 2.
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 $8,000 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
3
4
Year
Cash balance, beginning
9
Add collections from customers
99
348
Total cash available
87
Less disbursements:
nces
Purchase of inventory
38
48
30
Selling and administrative expenses
30
30
121
Equipment purchases
10
10
13
43
Dividends
2
2
Total disbursements
90
Excess (deficiency) of cash available over disbursements
(2)
16
Financing:
Borrowings
14
Repayments (including interest)*
(17)
Total financing
Cash balance, ending
"Interest will total $1,000 for the year.
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