Cash Budget Analysis- missing data
Not what you're looking for?
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.
Purchase this Solution
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 ...
Purchase this Solution
Free BrainMass Quizzes
Paradigms and Frameworks of Management Research
This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.
Basics of corporate finance
These questions will test you on your knowledge of finance.
Managing the Older Worker
This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce
Learning Lean
This quiz will help you understand the basic concepts of Lean.
Understanding the Accounting Equation
These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.