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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.) -this is the answer that I entered and it says it is incomplete and I can't figure out why? |
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Correct Answer:
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Quarter (000 omitted) |
(000 omitted) |
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|
1 |
2 |
3 |
4 |
year |
|
|
Cash Balance Beginning |
$ 6.00 |
$ 5.00 |
$ 5.00 |
$ 5.00 |
$ 6.00 |
|
Add: Collection from Customers |
$ 65.00 |
$ 70.00 |
$ 96.00 |
$ 92.00 |
$ 323.00 |
|
Total Cash Available |
$ 71.00 |
$ 75.00 |
$ 101.00 |
$ 97.00 |
$ 329.00 |
|
Less: Disbursements |
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|
Purchase of Inventory |
$ 35.00 |
$ 45.00 |
$ 48.00 |
$ 35.00 |
$ 163.00 |
|
Selling and Administrative expenses |
$ 28.00 |
$ 30.00 |
$ 30.00 |
$ 25.00 |
$ 113.00 |
|
Equipment purchases |
$ 8.00 |
$ 8.00 |
$ 10.00 |
$ 10.00 |
$ 36.00 |
|
Dividends |
$ 2.00 |
$ 2.00 |
$ 2.00 |
$ 2.00 |
$ 8.00 |
|
Total Disbursements |
$ 73.00 |
$ 85.00 |
$ 90.00 |
$ 72.00 |
$ 320.00 |
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Excess (deficiency) of cash |
$ (2.00) |
$ (10.00) |
$ 11.00 |
$ 25.00 |
$ 9.00 |
|
Financing |
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Borrowing |
$ 7.00 |
$ 15.00 |
0 |
0 |
$ 22.00 |
|
repayments (including interest) |
0 |
0 |
$ (6.00) |
$ (17.00) |
$ (23.00) |
|
Total Financing |
$ 7.00 |
$ 15.00 |
$ (6.00) |
$ (17.00) |
$ (1.00) |
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|
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Cash Balance Ending |
$ 5.00 |
$ 5.00 |
$ 5.00 |
$ 8.00 |
$ 8.00 |
The answer is complete, maybe there is some technical issue, or you can try entering zero where no number is required.
End of Answer.
Thanks
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