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Carefully study the following cash budget and determine the amount to be borrowed or repaid during each quarter, so that the company never ends a quarter with less than $50,000 cash on hand, and always repays as much debt as possible. There is no debt as of the beginning of the first quarter, and interest costs are assumed not significant in this analysis. Use the pick lists associated with the boxed areas near the bottom of the spreadsheet to determine the right amounts to borrow and repay each quarter. Correct choices will result in the boxed areas turning green. Cash budget Beginning cash Customer receipts Available cash Less: disbursements Direct materials Direct labor Factory overhead SG&A Other expense and tax Equipment purchases Total disbursements Cash surplus (deficit) Financing: Planned borrowing Planned repayment Ending cash balance First Quarter 10,000 140,000 150,000 28,000 14,000 13,500 31,000 11,000 0 97,500 52,500 52,500 Second Quarter 52,500 212,500 160,000 30,000 14,000 16,000 12,000 0 31,000 0 353,000 250,000 -140,500 -140,500 Third Quarter -140,500 59,500 200,000 41,000 15,000 20,000 13,000 0 33,000 122,000 0 -62,500 -62,500 Fourth Quarter -62,500 187,500 250,000 48,000 17,000 25,000 15,000 0 33,000 0 363,000 225,000 -175,500 -175,500

Carefully study the following cash budget and determine the amount to be borrowed or repaid during each quarter, so that the company never ends a quarter with less than $50,000 cash on hand, and always repays as much debt as possible. There is no debt as of the beginning of the first quarter, and interest costs are assumed not significant in this analysis. Use the pick lists associated with the boxed areas near the bottom of the spreadsheet to determine the right amounts to borrow and repay each quarter. Correct choices will result in the boxed areas turning green. Cash budget Beginning cash Customer receipts Available cash Less: disbursements Direct materials Direct labor Factory overhead SG&A Other expense and tax Equipment purchases Total disbursements Cash surplus (deficit) Financing: Planned borrowing Planned repayment Ending cash balance First Quarter 10,000 140,000 150,000 28,000 14,000 13,500 31,000 11,000 0 97,500 52,500 52,500 Second Quarter 52,500 212,500 160,000 30,000 14,000 16,000 12,000 0 31,000 0 353,000 250,000 -140,500 -140,500 Third Quarter -140,500 59,500 200,000 41,000 15,000 20,000 13,000 0 33,000 122,000 0 -62,500 -62,500 Fourth Quarter -62,500 187,500 250,000 48,000 17,000 25,000 15,000 0 33,000 0 363,000 225,000 -175,500 -175,500

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Carefully study the following cash budget and determine the amount to be borrowed or repaid during each quarter, so that the company never ends a quarter with less than $50,000 cash on hand, and always repays as much debt as possible. There is no debt as of the beginning of the first quarter, and interest costs are assumed not significant in this analysis. Use the pick lists associated with the boxed areas near the bottom of the spreadsheet to determine the right amounts to borrow and repay each quarter. Correct choices will result in the boxed areas turning green. Cash budget Beginning cash Customer receipts Available cash Less: disbursements Direct materials Direct labor Factory overhead SG&A Other expense and tax Equipment purchases Total disbursements Cash surplus (deficit) Financing: Planned borrowing Planned repayment Ending cash balance First Quarter 10,000 150,000 140,000 28,000 13,500 14,000 11,000 0 31,000 97,500 0 52,500 52,500 0 Second Quarter 52,500 212,500 160,000 30,000 14,000 16,000 0 12,000 0 31,000 353,000 250,000 -140,500 Third Quarter -140,500 59,500 200,000 41,000 15,000 20,000 13,000 0 33,000 122,000 0 -62,500 -62,500 0 Fourth Quarter -62,500 187,500 250,000 48,000 17,000 25,000 15,000 0 33,000 0 363,000 225,000 -175,500 -175,500
Transcribed Image Text:Carefully study the following cash budget and determine the amount to be borrowed or repaid during each quarter, so that the company never ends a quarter with less than $50,000 cash on hand, and always repays as much debt as possible. There is no debt as of the beginning of the first quarter, and interest costs are assumed not significant in this analysis. Use the pick lists associated with the boxed areas near the bottom of the spreadsheet to determine the right amounts to borrow and repay each quarter. Correct choices will result in the boxed areas turning green. Cash budget Beginning cash Customer receipts Available cash Less: disbursements Direct materials Direct labor Factory overhead SG&A Other expense and tax Equipment purchases Total disbursements Cash surplus (deficit) Financing: Planned borrowing Planned repayment Ending cash balance First Quarter 10,000 150,000 140,000 28,000 13,500 14,000 11,000 0 31,000 97,500 0 52,500 52,500 0 Second Quarter 52,500 212,500 160,000 30,000 14,000 16,000 0 12,000 0 31,000 353,000 250,000 -140,500 Third Quarter -140,500 59,500 200,000 41,000 15,000 20,000 13,000 0 33,000 122,000 0 -62,500 -62,500 0 Fourth Quarter -62,500 187,500 250,000 48,000 17,000 25,000 15,000 0 33,000 0 363,000 225,000 -175,500 -175,500
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