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 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 $ 1 6 69 47 10 2 (5) Quarter (000 omitted) 2 3 57 32 9 2 100 6 108 30 22 2 7 4 31 2 (13) (000 omitted) Year 369 98 51
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 $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
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.
$
1
6
69
47
10
2
(5)
Quarter (000 omitted)
2
3
57
32
9
2
100
6
108
30
22
2
7
4
31
2
(13)
(000 omitted)
Year
369
98
51](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F63c5c9c2-b11a-4e1c-a790-6dff32862120%2Fd055cfc3-e654-4fa9-9b6d-99b80f3f7e7f%2Fj30mmi_processed.jpeg&w=3840&q=75)
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