A cash budget, by quarter, is given below for a retail company (000 omitted). The company...

 

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A cash budget, by quarter, is given below for a retail company (000 omitted). The company requires a minimum cash balance of $5,000 to start each quarter. Required: 1. Fill in the missing amounts in the table that follows Quarter 1 2 Cash balance, beginning $6 $? Add collections from customers ? ? Total cash available 71 ? Less disbursements: Purchase of inventory 35 45 Selling and administrative expenses ? 30 Equipment purchases 8 00 Dividends 2 2 Total disbursements 2 85 Excess (deficiency) of cash available over disbursements (2) ? Financing: Borrowings Repayments* Total financing Cash balance, ending ? 15 ? ? $? $? *For this exercise, assume there will be no interest on any borrowings. A cash budget, by quarter, is given below for a retail company (000 omitted). The company requires a minimum cash balance of $5,000 to start each quarter. Required: 1. Fill in the missing amounts in the table that follows Quarter 1 2 Cash balance, beginning $6 $? Add collections from customers ? ? Total cash available 71 ? Less disbursements: Purchase of inventory 35 45 Selling and administrative expenses ? 30 Equipment purchases 8 00 Dividends 2 2 Total disbursements 2 85 Excess (deficiency) of cash available over disbursements (2) ? Financing: Borrowings Repayments* Total financing Cash balance, ending ? 15 ? ? $? $? *For this exercise, assume there will be no interest on any borrowings.

Answer rating: 100% (QA)

Answer To fill in the missing amounts in the cash budget table we can follow these steps 1 Calculate ... View the full answer