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Cash Budget Analysis- missing data

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A cash budget, by quarter, is given below for a retail company. The company requires a minimum cash balance of at least $5,000 to start each quarter.

Required: Fill in the missing amounts in the table below:

QUARTER
1 2 3 4 Year
Cash Balance, beginning..................$9 $? $? $? $?
Add collections from customers........... ? ? 125 ? 391
Total Cash available.....................85 ? ? ? ?

Less disbursements:
Purchase of inventory....................40 58 ? 32 ?
Operating expenses....................... ? 42 54 ? 180
Equipment purchases...................... 10 8 8 ? 36
Dividends.................................2 2 2 2 ?
Total Disbursements.......................? 110 ? ? ?

Excess (deficiency) of cash available
over disbursements........................(3) ? 30 ? ?

Financing:
Borrowings.................................? 20 -- -- ?
Repayments (including interest)............-- -- (?) (7) (?)

Total financing............................? ? ? ? ?

Cash balance, ending......................$? $? $? $? $?

*Interest will total $4,000 for the year.

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Solution Summary

The solution explains how to calculate the missing data for the given cash budget

Solution Preview

Please see the attachment. Please see the cell formula to know how the figures have been calculated.
I am giving the calculation details below
Quarter 1
Add collections = 85-9 = 76
Total disbursement = 85+3 = 88 (cash available +excess deficiency)
Operating Expense = 88-sum of others (88 is calculated above)
Borrowing = 8, so that minimum balance = 5
Total financing = 8
Cash balance ending = 5
Quarter 2
Cash balance beginning = 5 (the ending of last quarter)
Since borrowing is 20, so excess/deficiency should be -15 ...

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