Answered step by step
Verified Expert Solution
Question
1 Approved Answer
6. Fill in the blank amounts in this cash budget. The company requires a minimum cash balance of 10 to start a quarter. This problem
6. Fill in the blank amounts in this cash budget. The company requires a minimum cash balance | |||||||
of 10 to start a quarter. This problem ignores interest income or expense. | (15 PTS) | ||||||
1st QTR | 2nd QTR | 3rd QTR | 4th QTR | ||||
Cash Balance, Beginning | 10 | 10 | |||||
Add: Payments from Customers | 70 | 67 | 81 | ||||
Total Cash Available | 87 | 91 | |||||
Less Disbursements: | |||||||
Purchase of inventory | 31 | 30 | 40 | ||||
Operating Expenses | 39 | 20 | 18 | ||||
Equipment Purchases | 0 | 10 | 20 | ||||
Dividends | 0 | 5 | 0 | 5 | |||
Total Disbursements | 70 | 78 | |||||
Cash Available before Financing | 5 | 25 | (3) | ||||
Net Financing | 13 | ||||||
Cash Balance, Ending | 10 | 10 | 10 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started