Question

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.)

	Quarter (000 omitted)
	1	2	3	4	Year
Cash balance, beginning	$6
Add collections from customers			96		323
Total cash available	71
Less disbursements:
Purchase of inventory	35	45		35
Selling and administrative expenses		30	30		113
Equipment purchases	8	8	10		36
Dividends	2	2	2	2
Total disbursements		85
Excess (deficiency) of cash available over disbursements	(2)		11
Financing:
Borrowings		15
Repayments (including interest)*				(17)
Total financing
Cash balance, ending
*Interest will total $1,000 for the year.

Answer 1

			Q1	Q2	Q3	Q4	Year
Cash budget:
Cash Balance Beginning			6	5	5	5	6
Cash collection from customer			65	70	96	92	323
Total Available cash			71	75	101	97	329
Less: Disbursement
Purchase of inventory			35	45	48	35	163
Selling and admin expense			28	30	30	25	113
Equipment purchase			8	8	10	10	36
Dividends			2	2	2	2	8
Total disbursement			73	85	90	72	320
Excess (Deficiency)			-2	-10	11	25	9
Financing:
Borrowings			7	15			22
Repayments including Interest					-6	-17	-23
Total financing			7	15	-6	-17	-1
Cash Balance, ending			5	5	5	8	8