60.1K

Verified Solution

Link Copied!

A cash budget, by quarters, is given below for a retail company $(000$ omitted$).$ The company requires a minimum cash balance of $\backslash (\backslash$$ $4,000\backslash )$ to start each quarter.

Required:

Fill in the missing amounts.

Note: Enter your answers in thousands of dollars. Cash deficiencies and Repayments should be indicated by a minus sign.

$\backslash$begin$\{$tabular$\}\{|$c$|$c$|$c$|$c$|$c$|$c$|\}$

$\backslash$hline & $\backslash$multicolumn$\{4\}\{|$c$|\}\{$Quarter $(000$ omitted$)\}$ & $(000$ omitted$)\backslash \backslash$

$\backslash$hline & $1$ & $2$ & $3$ & $4$ & Year $\backslash \backslash$

$\backslash$hline Cash balance, beginning & $\backslash$$ $7$ & & & & $\backslash \backslash$

$\backslash$hline Add collections from customers & & & $109$ & & $392\backslash \backslash$

$\backslash$hline Total cash available & $89$ & & & & $\backslash \backslash$

$\backslash$hline Less disbursements: & & & & & $\backslash \backslash$

$\backslash$hline Purchase of inventory & $48$ & $58$ & & $32$ & $\backslash \backslash$

$\backslash$hline Selling and administrative expenses & & $45$ & $30$ & & $127\backslash \backslash$

$\backslash$hline Equipment purchases & $11$ & $9$ & $23$ & & $53\backslash \backslash$

$\backslash$hline Dividends & $2$ & $2$ & $2$ & $2$ & $\backslash \backslash$

$\backslash$hline Total disbursements & & $114$ & & & $\backslash \backslash$

$\backslash$hline Excess $($deficiency$)$ of cash available over disbursements & $(2)$ & & $7$ & & $\backslash \backslash$

$\backslash$hline Financing: & & & & & $\backslash \backslash$

$\backslash$hline Borrowings & & $18$ & & & $\backslash \backslash$

$\backslash$hline Repayments $($including interest$)*$ & & & & $(22)$ & $\backslash \backslash$

$\backslash$hline Total financing & & & & & $\backslash \backslash$

$\backslash$hline Cash balance, ending & & & & & $\backslash \backslash$

$\backslash$hline $*$Interest will total $\backslash (\backslash$$ $1,000\backslash )$ for the year. & & & & & $\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$

Prev

$3$ of $3$

Next

Answer & Explanation Solved by verified expert

See Answer