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 $8,400 at the start of each month. All borrowings, repayments, and investments are made in even $1,200 amounts. No borrowings or investments exist at the beginning of July.
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 $8,400 at the start of each month. All borrowings, repayments, and investments are made in even $1,200 amounts. No borrowings or investments exist at the beginning of July.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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 $8,400 at the start of each month. All
borrowings, repayments, and investments are made in even $1,200 amounts. No borrowings or investments exist at the beginning of July.
Beginning cash balance
Cash receipts
Total cash available
Cash disbursements
Payments on account
Wages expense
Overhead costs
Total disbursements
$
$
Cash excess (deficiency)
Minimum cash balance
Cash available (needed) $
Financing
Borrowings (repayments)
Acquire (sell) investments
Receive (pay) interest
Ending cash balance
July
$8,880 $
19,680
$
12,000
9,600
$24,720 $
(8,400)
$4,800 $
$8,640 $
August
24,240
$9,360
11,040
September
$
(8,400)
$(10,560) $
$
$49,200
$
$13,680 $
14,880
$39,120 $
$(1,200) $
Total
$93,360
41,520
31,200
$(13,920)
(24)
$8,856
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