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. 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 Less disbursements: Purchase of inventory Selling and administrative expenses Equipment purchases Dividends Total disbursements Excess (deficiency) of cash available over disbursements Quarter 1 Quarter 2 (000 omitted) (000 omitted) $ 6 71 35 8 2 (2) 45 30 8 2 85 Quarter 3 (000 omitted) 96 30 10 2 11 Quarter 4 (000 omitted) 35 2 Year (000 omitted) 323 113 36
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.
aj.9
![Exercise 8-11 (Static) Cash Budget Analysis [LO8-8]
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.
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 i
Add collections from customers
Total cash available
Less disbursements:
Purchase of inventory
Selling and administrative expenses
Equipment purchases
Dividends
Total disbursements
Excess (deficiency) of cash available over disbursements
Financing:
Borrowings
Repayments (including interest)
Total financing
Cash balance, ending
"Interest will total $1,000 for the year.
Quarter 1
(000 omitted)
$
6
71
35
8
2
(2)
Quarter 2
(000 omitted)
45
30
8
2
85
15
Quarter 3
(000 omitted)
96
30
10
2
11
Quarter 4
(000 omitted)
35
2
(17)
Year (000
omitted)
323
113
36](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F07068ef2-65b7-40dc-b794-dfaaa6d1a4ae%2Fba2b3de1-5a76-4cf8-a88a-1da16ad09a3c%2Fg4v4nsn_processed.jpeg&w=3840&q=75)

Trending now
This is a popular solution!
Step by step
Solved in 3 steps









