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 $3,000 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	$8
Add collections from customers			110		400
Total cash available	94
Less disbursements:
Purchase of inventory	49	59		33
Selling and administrative expenses		45	30		130
Equipment purchases	12	9	24		55
Dividends	2	2	2	2
Total disbursements		115
Excess (deficiency) of cash available over disbursements	(1)		5
Financing:
Borrowings		17
Repayments (including interest) *				(20)
Total financing
Cash balance, ending
*Interest will total $1,000 for the year.

Answer 1

			Q1	Q2	Q3	Q4	Total
Cash Balance, beginning			8	3	3	3	8
Add: Collections from Customer			86	98	110	106	400
Total Cash available			94	101	113	109	408
Less: Disbursement
Purchase of Inventory			49	59	52	33	193
Selling and admin expense			32	45	30	23	130
Equipment purchase			12	9	24	10	55
Dividend			2	2	2	2	8
Total Disbursement			95	115	108	68	386
Excess/ (Deficiency)			-1	-14	5	41	22
Financing:
Borrowing			4	17			21
Repayment including interest					-2	-20	-22
Total Financing			4	17	-2	-20	-1
Cash balance, ending			3	3	3	21	21