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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.

    © BrainMass Inc. brainmass.com June 3, 2020, 10:38 pm ad1c9bdddf
    https://brainmass.com/business/cash-budgeting/cash-budget-analysis-missing-data-241822

    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 ...

    Solution Summary

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

    $2.19

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