Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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 lowercase letters (a, b, c, etc.); these lowercase letters will be referred to in the questions that follow. (It will be useful 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 of dollars. Carney Corporation Cash Budget $000's Quarters 1 sid $ a S 2 Se $70 S 3 $13 $67 S80 4 sid $81 891 Cash Balance, Beginning Add: Collections from Customers Total Cash Available Less: Disbursements: Purchase of Inventory Operating Expenses Equipment Purchases Dividends Total Disbursements $32 $351 $10 $ 0 $77 Sd $22 $14 $ 6 $ S40 S? $19 $ 0 $ S35 $15 Sa $ 5 $55 S7 $17 (S2 $30 Excess (Deficiency) of Cash Over Disbursements Financing: Borrowings Repayments (Including Interest) Total Financing Cash Balance, Ending Sb S12 $12 $10 ($21 ($21 $15 $10 a. What are the collections from customers during the first quarter (item a), in thousands of dollars? b. What is the borrowing required during the first quarter to meet the minimum cash balance (item b), in thousands of dollars? c. What is the cash disbursed for purchases during the second quarter (item c), in thousands of dollars? d. What is the repayment (including interest) of financing during the second quarter (item d), in thousands of dollars? e. What is the cash balance at the beginning of the second quarter (item e), in thousands of dollars? f. What were the total disbursements during the third quarter (item f), in thousands of dollars
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