A cash budget, by quarters, is given below for a retail company (000 omitted). The company requires a minimum cash balance of at least $3,000 to start each quarter. Fill in the missing amounts. (Enter your answers in thousands of dollars. Cash deficiencies and Repayments should be indicated by a minus sign.) Quarter (000 omitted)(000 omitted)14.YearCash balance, beginningAdd collections from customers124431Total cash available97Less disbursements:Purchase of inventory546430Selling and administrative expenses4530137Equipment purchases9.2955Dividends222Total disbursements120Excess (deficiency) of cash available overdisbursements(5)12Financing:12BorrowingsRepayments (including interest)(12)Total financingCash balance, ending*Interest will total $1,000 for the year.%24

A cash budget is a forecast of a company's cash inflows and outflows over a set period of time, such…

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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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A cash budget, by quarters, is given below for a retail company (000 omitted). The company requires a minimum cash balance of at least $3,000 to start each quarter. Fill in the missing amounts. (Enter your answers in thousands of dollars. Cash deficiencies and Repayments should be indicated by a minus sign.)

Quarter (000 omitted)
(000 omitted)
1
4.
Year
Cash balance, beginning
Add collections from customers
124
431
Total cash available
97
Less disbursements:
Purchase of inventory
54
64
30
Selling and administrative expenses
45
30
137
Equipment purchases
9.
29
55
Dividends
2
2
2
Total disbursements
120
Excess (deficiency) of cash available over
disbursements
(5)
12
Financing:
12
Borrowings
Repayments (including interest)
(12)
Total financing
Cash balance, ending
*Interest will total $1,000 for the year.
%24

Definition Definition Estimate of an organization's cash flow for a future period. A cash budget forecasts future cash receipts and payments from various sources for a fiscal year. A cash budget can be created once a month or once a week to determine the organization's cash position and ensure its performance in relation to the budget. It aids in determining whether the company has enough cash and cash equivalents to meet its operational needs in the future.

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