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Homework answers / question archive / A cash budget by quarters for the Carney Company is given below (note that some data are missing)

A cash budget by quarters for the Carney Company is given below (note that some data are missing)

Accounting

A cash budget by quarters for the Carney Company is given below (note that some data are missing). Missing data amounts have been keyed with either question marks or lowercase letters (a, b, c, etc.); these lowercase letters will be referred to in the questions that follow. (It will be useful to calculate a value for items where a question mark appears.) The company requires a minimum cash balance of at least $10,000 to start a quarter. All data are in thousands of dollars.

  

Carney Corporation

Cash Budget

$000’s

 

Quarters

   
 

1

2

3

4

Cash Balance, Beginning

$16

$ e

$13

$10

Add: Collections from Customers

$ a

$70

$67

$81

Total Cash Available

$ ?

$ ?

$80

$91

Less: Disbursements:

    Purchase of Inventory

$32

$ c

$40

$35

    Operating Expenses

$35

$22

$ ?

$15

    Equipment Purchases

$10

$14

$19

$ 0

    Dividends

$ 0

$ 6

$ 0

$ 5

Total Disbursements

$77

$ ?

$ f

$55

         

Excess (Deficiency) of Cash

 

    Over Disbursements

$ 7

$17

($2)

$36

Financing:

    Borrowings

$ b

--

$12

--

    Repayments (Including Interest)

--

$ d

--

($21)

Total Financing

$ ?

$ ?

$12

($21)

Cash Balance, Ending

$10

$ ?

$10

$15

a. What are the collections from customers during the first quarter (item a), in thousands of dollars?

b. What is the borrowing required during the first quarter to meet the minimum cash balance (item b), in thousands of dollars?

c. What is the cash disbursed for purchases during the second quarter (item c), in thousands of dollars?

d. What is the repayment (including interest) of financing during the second quarter (item d), in thousands of dollars?

e. What is the cash balance at the beginning of the second quarter (item e), in thousands of dollars?

f. What were the total disbursements during the third quarter (item f), in thousands of dollars?

g. Show the total cash budget for the year.

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