Cash budgetThe following cash budget is for the third quarter of this year. Solve for the missing numbers on the cash budget, assuming that the accountant has requested a minimum cash balance of $7,000 at the start of each month. All borrowings, repayments, and investments are made in even $1,000 amounts. No borrowings or investments exist at the beginning of July. JulyAugustSeptemberTotalBeginning cash balance$7,400 Cash receipts16,40020,200 Total cash available $41,000$77,800Cash disbursements Payments on account $7,800$11,400 Wages expense10,000 12,40034,600Overhead costs8,0009,200 26,000Total disbursements$20,600 $32,600 Cash excess (deficiency) Minimum cash balance(7,000)(7,000) Cash available (needed) $(8,800) $(11,600)Financing Borrowings (repayments)$4,000 $(1,000) Acquire (sell) investments-- Receive (pay) interest-- (20)Ending cash balance$7,200 $7,380

A cash budget is a company's estimation of cash inflows and outflows over a specific period of time,…

Answered: Solve for the missing numbers on the…

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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Cash budget
The following cash budget is for the third quarter of this year. Solve for the missing numbers on the cash budget, assuming that the accountant has requested a minimum cash balance of $7,000 at the start of each month. All borrowings, repayments, and investments are made in even $1,000 amounts. No borrowings or investments exist at the beginning of July.

	July	August	September	Total
Beginning cash balance	$7,400
Cash receipts	16,400	20,200
Total cash available			$41,000	$77,800
Cash disbursements
Payments on account		$7,800	$11,400
Wages expense	10,000		12,400	34,600
Overhead costs	8,000	9,200		26,000
Total disbursements	$20,600		$32,600
Cash excess (deficiency)
Minimum cash balance	(7,000)	(7,000)
Cash available (needed)		$(8,800)		$(11,600)
Financing
Borrowings (repayments)	$4,000		$(1,000)
Acquire (sell) investments	-	-
Receive (pay) interest	-	-		(20)
Ending cash balance	$7,200			$7,380