Question

Topper, Inc. prepared the following cash budget for the fourth quarter. Fill in the missing amounts, assuming that Topper desires to maintain a $15,000 minimum monthly cash balance and all equipment was purchased during December. Any required borrowings and repayments must be made in even increments of $1,000. (Enter answers in necessary fields only. Leave other fields blank. Do not enter 0.)

			October	November	December	Quarter
	Beginning cash balance		$	$15,500	$	$16,500
	Collections from sales		55,000			238,600
	Total cash available		71,500	96,000	120,000
	Less disbursements
	Materials purchases			10,000	14,000	36,000
	Direct labor		5,000	6,000	8,000	19,000
	Manufacturing overhead		20,000	23,000	22,000
	Selling & administrative expenses		29,000	30,000
	Equipment purchase					15,000
	Dividends				5,000	5,000
	Total disbursements		66,000
	Excess (deficiency) of cash			27,000
	Minimum cash balance		15,000	15,000	15,000
	Cash available (needed)		-9,500		9,000
	Financing:
	Borrowings					10,000
	Repayments					-10,000
	Interest			-100		-100
	Total financing			-10,100		-100
	Ending cash balance		$15,500	$16,900	$	$

Answer 1