Question
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
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 lower-case letters (a, b, c, etc.); these lower-case letters will be referred to in the questions that follow. (It may be necessary 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. CarneyCompany CashBudget Quarters 1 2 3 4 Cash balance, beginning $16 $e $13 $10 Add collections from customers a 70 67 80 Total cash available ? ? 80 90 Less disbursements: Purchase of inventory 31 c 40 35 Operating expenses 35 22 ? 15 Equipment purchases 0 14 19 0 Dividends 0 6 0 5 Total disbursements 66 ? f 55 Excess (deficiency) of cash available over disbursements 7 17 (2) 35 Financing: Borrowings b - 12 - Repayments (including interest) - d - (21) Total financing ? ? 12 (21) Cash balance, ending $10 ? $10 $14 The cash balance at the beginning of the second quarter (item e in thousands) is:
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