Arjun has been responsible for putting together his company’s cash budget for the past three years. Initially, it was a frustrating task, as he had to dig into the underlying budgets and transactions to identify their effect on cash. But now he has mastered it. Consequently, his supervisor gives him a more challenging task: filling in a partially completed cash budget for the final quarter of the year, as follows.

Cash Schedule
		October		November		December		Quarter
Beginning cash balance		$ 20,800.00		(f)		$ 20,835.00		(r)
Cash receipts		(a)		321,700		329,100		966,400
Cash available		(b)		342,460		(k)		987,200
Cash disbursements for:
DM purchases		(c)		41,700		(l)		126,400
DL and MOH		148200				150,300		448,400
SG&A expenses		120,500		122,000		(m)		(s)
Purchase of long-term investments		—		3,000		17,000		20,000
Total cash disbursements		312,600		316,600		(n)		959,100
Cash surplus/(deficiency)		23,800		(h)		20,035		28,100
Loan balance beginning of period		8,000		(i)		—		8,000
Loan withdrawals/(payments)		-3,000		(j)		(o)		(t)
Loan balance end of period		(d)		—		(p)		—
Interest payments		40		25		—		65
Budgeted ending cash balance		(e)		20,835		(q)		20,035

Additional information:

Loan withdrawals or repayments must be made in $1,000 increments.

Any loan withdrawal is considered outstanding on the first day of the month in which it is drawn.

Any loan payment is considered made on the last day of the month in which it is paid.

Help Arjun by filling in the missing components of the cash budget?

Answer rating: 100% (QA)

I A cash budget A cash budget is an estimate of anticipated cash receipts and cash payments during a ... View the full answer