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)				(000 omitted)
	1	2	3	4	Year
Cash balance, beginning	$8
Add collections from customers			106		367
Total cash available	77
Less disbursements:
Purchase of inventory	45	55		29
Selling and administrative expenses		32	30		111
Equipment purchases	7	8	20		45
Dividends	2	2	2	2
Total disbursements		97
Excess (deficiency) of cash available over disbursements	(2)		7
Financing:
Borrowings		7
Repayments (including interest) *		-		(9)
Total financing
Cash balance, ending
*Interest will total $1,000 for the year.

Answer 1

	Quarter(000 omitted)				(000 omitted)
	1	2	3	4	Year
Cash balance ,beginning	$   8	$   3	$   3	$ 3
Add collections from customers	69	90	106	102	367
Total cash available	77	93	109	105
Less disbursements :
Purchase of inventory	45	55	50	29	179
Selling and administrative expenses	25	32	30	24	111
Equipment purchases	7	8	20	10	45
Dividends	2	2	2	2	8
Total disbursements	79	97	102	65	343
Excess (deficiency) of cash available over disbursements	-2	-4	7	40	41
Financing :
Borrowing	5	7
Repayments(including interest)			-4	-9	-13
Total financing	5	7	-4	-9
Cash balance ,ending	3	3	3	31