A cash budget, by quarters, is given below for a retail company (000 omitted). The company requires a minimum cash balanc- $3,000 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 sigm 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 8 77 45 7 2 (2) Quarter (000 omitted) 2 3 55 32 8 2 97 7 106 30 20 2 4 29 2 (9) (000 omitted) Year 367 111 45
A cash budget, by quarters, is given below for a retail company (000 omitted). The company requires a minimum cash balanc- $3,000 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 sigm 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 8 77 45 7 2 (2) Quarter (000 omitted) 2 3 55 32 8 2 97 7 106 30 20 2 4 29 2 (9) (000 omitted) Year 367 111 45
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
![Exercise 8-11 (Algo) 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
$3,000 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:
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
8
77
45
7
2
(2)
Quarter (000 omitted)
2
3
55
32
8
2
97
7
106
30
20
2
7
4
29
2
(000 omitted)
Year
367
111
45](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8b017ef2-e5b5-4bbd-aa7e-442c417137a1%2Fe5b64b2f-9199-43aa-a89b-b4700091e0b6%2F2f0vq3s_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise 8-11 (Algo) 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
$3,000 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:
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
8
77
45
7
2
(2)
Quarter (000 omitted)
2
3
55
32
8
2
97
7
106
30
20
2
7
4
29
2
(000 omitted)
Year
367
111
45
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