Cash budget The monthly cash budgets for the second quarter of 2010 follow ($000 omitted) for Morrison Mfg Co A minimum cash balance of $30,000 is required to start each month, and a $100,000 line of credit has been arranged with a local bank at a 8 interest rate April May June Total Cash balance, beginning $ 26 $ $ $ 26 Add collections from 108 customers Total cash available $ 94 $ $166 $338 Less disbursements Purchase of inventory $ $ 60 $ 48 $ Operating expenses 30 Capital additions 34 8 44 Payment of dividends 8 Total $ $108 $ 82 $304 disbursements Excess (deficiency) of cash available over $(20) $ $ 84 $ disbursements Borrowings Repayments (including interest) Cash balance, ending $ $30 $ $ 33 Required Calculate the missing amounts (Hint The total cash available includes collections from customers for all three months, plus the beginning cash balance from April 1, 2010 )

Question

Cash budget The monthly cash budgets for the second quarter of 2010 follow ($000 omitted) for Morrison Mfg  Co  A minimum cash balance of $30,000 is required to start each month, and a $100,000 line of credit has been arranged with a local bank at a 8  interest rate  April May June Total Cash balance, beginning $ 26 $   $   $ 26 Add collections from   108     customers Total cash available $ 94 $  $166 $338 Less disbursements  Purchase of inventory $   $ 60 $ 48 $   Operating expenses 30       Capital additions 34 8 44 Payment of dividends   8 Total $   $108 $ 82 $304 disbursements Excess (deficiency) of cash available over $(20) $   $ 84 $   disbursements Borrowings         Repayments (including interest)     Cash balance, ending $    $30 $  $ 33 Required  Calculate the missing amounts  (Hint  The total cash available includes collections from customers for all three months, plus the beginning cash balance from April 1, 2010 )

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Cash budget The monthly cash budgets for the second quarter of 2010 follow ($000 omitted) for Morrison Mfg. Co. A minimum cash balance of $30,000

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