50.1K

Verified Solution

Link Copied!

15) A cash budget by quarters for the Carney Company is given below (note that some data are missing). Missing data amounts have been keyed with either question marks or lower-case letters (a, b, c, etc.); these lower- case letters will be referred to in the questions that follow. (It may be necessary to calculate a value for items where a question mark appears.) The company requires a minimum cash balance of at least $10,000 to start a quarter. All data are in thousands. Carney Company Cash Budget Quarters 1 21 3 41 Cash balance, beginning $16 $e $13 $10 Add collections from customers al 70 67 80 Total cash available ? ? 80 90 Less disbursements: Purchase of inventory 31 40 35 Operating expenses 35 22 ? 15 Equipment purchases 0 14 19 0 Dividends 61 0 5 Total disbursements 66 ? f 55 Excess (deficiency) of cash available over disbursements 7 17 (2) 351 Financing: Borrowings bl 12 Repayments (including interest) dl (21) Total financing ? ?) 12 (21) Cash balance, ending $10 ? $10 $14 The collections from customers during the first quarter (item a in thousands) are: A) $50. B) $57. C) $60. D) $73. 16) The borrowing required during the first quarter to meet the minimum cash balance (item b in thousands) is: A) $0. B) $3. C) $7. D) $10. 17) The cash disbursed for purchases during the second quarter (item c in thousands) is A) $9. B) $13. C) $21. 18) D) $24 The repayment (including interest) of financing during the second quarter (item d in thousands) is: A) $0. B) $4. C) $7. D) $17. 19) The cash balance at the beginning of the second quarter (item e in thousands) A) $0. B) $7. C) $10. D) $14 20) The total disbursements during the third quarter (item f in thousands) are: A) $59. B) $78. C) $82. D) $84

Answer & Explanation Solved by verified expert

See Answer