cash budget, by quarters, is given below for a retail company (000 omitted). The company requires a minimum cash ba ast $5,000 to start each quarter. equired: in the missing amounts. (Enter your answers in thousands of dollars. Cash deficiencies and Repayments should be minus sign.) Quarter 1 Quarter 2 Quarter 3 Quarter 4 (000 omitted) (000 omitted) (000 omitted) (000 omitted) Year (000 omitted) Cash balance, beginning $ Add collections from customers 323 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 interes Total financing Cash balance, ending 71 35 30 113 10 36 2 (2) 8 15
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.
![cash budget, by quarters, is given below for a retail company (000 omitted). The company requires a minimum cash bala
ast $5,000 to start each quarter.
equired:
ll in the missing amounts. (Enter your answers in thousands of dollars. Cash deficiencies and Repayments should be in
minus sign.)
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Year (000
omitted)
(000 omitted) (000 omitted) (000 omitted) (000 omitted)
Cash balance, beginning
$
Add collections from customers
6
96
323
Total cash available
Less disbursements:
Purchase of inventory
Selling and administrative expenses
Equipment purchases
Dividends
Total disbursements
71
35
45
35
30
30
113
8
8
10
36
2
2
2
85
Excess (deficiency) of cash available over disbursements
(2)
11
Financing:
Borrowings
15
Repayments (including interest
(17)
Total financing
Cash balance, ending
"Interest will total $1,000 for the year](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0cd8d351-0ed6-47a0-8fd3-a4d26b5d3179%2F015b13ad-89a6-4843-b6f5-30f119806447%2Flvrfx3w_processed.png&w=3840&q=75)
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