Exercise 8-11 (Algo) Cash Budget Analysis (LO8-8) 6 A cash budget, by quarters, is given below for a retail company

Question

Exercise 8-11 (Algo) Cash Budget Analysis (LO8-8) 6 A cash budget, by quarters, is given below for a retail company (O00 omitted). The company requires a minimum cash balance of at Jeast $8,000 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.) points Quarter (000 omitted) (000 omitted) Year 1 2 3 $ 6 eBook 120 415 79 Print 55 65 31 45 30 References 119 13 9 30 62 Cash balance beginning Add collections from customers Total cash available Los disbursements Purchase of inventory Selling and administrative expenses Equipment purchases Dividends Total disbursements Excess (deficiency of cash available over disbursements Financing Borrowings Repayments (including interest) Total financing Cash balapce, ending "Interest will total $1,000 for the year. 2 2 2 121 11 11 (28)

Help In Homework · Accepted Answer

Answer Requirement asked Quarter (000 omitted) (000 omitted) 1 2 3 4 Year Cash balance, beginning $6 $8 $8 $8 $6 Add collections from customers $73 $110 $120 $112 $415 Total cash available $79 $118 $128 $120 $421 Less disbursements: Purchase of inventory $55 $65 $55 $31 $206 Selling and administrative expenses $20 $45 $30 $24 $119 Equipment purchases $13 $9 $30 $10 $62 Dividends $2 $2 $2 $2 $8 Total disbursements $90 $121 $117 $67 $395 Excess (deficiency) of cash available over disbursements ($11) ($3) $11 $53 $26 Financing: Borrowings $19 $11 $0 $0 $30 Repayments (including interest) * $0 $0 ($3) ($28) ($31) Total financing $19 $11 ($3) ($28) ($1) Cash balance, ending $8 $8 $8 $25 $25 *Interest will total $1,000 for the year. Calculation Quarter (000 omitted) (000 omitted) 1 2 3 4 Year Cash balance, beginning 6 8 8 8 6 Add collections from customers =79-6 =118-8 120 =415-120-110-73 415 Total cash available 79 =121-3 =120+8 =8+112 =415+6 Less disbursements: Purchase of inventory 55 65 =117-30-30-2 31 =55+65+55+31 Selling and administrative expenses =90-13-2-55 45 30 =119-30-45-20 119 Equipment purchases 13 9 30 =62-30-9-13 62 Dividends 2 2 2 2 =2+2+2+2 Total disbursements =79+11 121 =128-11 =31+24+10+2 =206+119+62+8 Excess (deficiency) of cash available over disbursements -11 =8-11 11 =120-67 =421-395 Financing: Borrowings =11+8 11 0 0 =19+11 Repayments (including interest) * 0 0 -3 -28 =-3-28 Total financing =19+0 =11+0 =0-3 =0-28 =30-31 Cash balance, ending =-11+19 =-3+11

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Exercise 8-11 (Algo) Cash Budget Analysis (LO8-8) 6 A cash budget, by quarters, is given below for a retail company (O00 omitted)

Expert Solution

Archived Solution

	Quarter (000 omitted)				(000 omitted)
	1	2	3	4	Year
Cash balance, beginning	$6	$8	$8	$8	$6
Add collections from customers	$73	$110	$120	$112	$415
Total cash available	$79	$118	$128	$120	$421
Less disbursements:
Purchase of inventory	$55	$65	$55	$31	$206
Selling and administrative expenses	$20	$45	$30	$24	$119
Equipment purchases	$13	$9	$30	$10	$62
Dividends	$2	$2	$2	$2	$8
Total disbursements	$90	$121	$117	$67	$395
Excess (deficiency) of cash available over disbursements	($11)	($3)	$11	$53	$26
*Financing:*
Borrowings	$19	$11	$0	$0	$30
Repayments (including interest) *	$0	$0	($3)	($28)	($31)
Total financing	$19	$11	($3)	($28)	($1)
Cash balance, ending	$8	$8	$8	$25	$25
*Interest will total $1,000 for the year.