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A cash budget, by quarters, is given below for a retail company (000 omitted). The company requires a minimum cash balance of at least $8,000
A cash budget, by quarters, is given below for a retail company (000 omitted). The company requires a minimum cash balance of at least $8,000 to start each quarter. Fill in the missing amounts. (Enter your answers in thousands of dollars. Cash deficiencies and Repayments should be indicated by a minus sign.)
Quarter (000 omitted) (000 omitted) 1 N 3 4 Year Cash balance, beginning 7 $ 8 $ 8 $ 8 Add collections from customers 97 335 Total cash available 80 105 Less disbursements: Purchase of inventory 36 46 28 30 30 117 Selling and administrative expenses Equipment purchases 7 10 11 38 Dividends 2 2 2 2 88 (2) 17 16 Total disbursements Excess (deficiency) of cash available over disbursements Financing: Borrowings Repayments (including interest)* Total financing Cash balance, ending *Interest will total $1,000 for the year. (18)Step by Step Solution
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