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ch 7 exer #2 A cash budget, by...

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Accounting

ch 7 exer #2

A cash budget, by quarters, is given below for a retail company (000 omitted). The company requires a minimum cash balance of at least $5,000 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.)

Cash Budget Quarter (000 omitted)
1 2 3 4 Year
Cash balance, beginning $8
Add collections from customers 102 357
Total cash available 83
Less disbursements:
Purchase of inventory 41 51 33
Selling and administrative expenses 32 30 112
Equipment purchases 13 8 16 47
Dividends 2 2 2 2
Total disbursements 93
Excess (deficiency) of cash available over disbursements (3) 11
Financing:
Borrowings 11
Repayments (including interest) * (14)
Total financing
Cash balance, ending
*Interest will total $1,000 for the year.

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