E8-11

EXERCISE 8-11 Cash Budget Analysis LO8-8 A cash budget, by quarters, is given below for a retail company (000 omitted). The company requires a minimum cash balance of at least $5,000 to start each quarter Quarter 4 Year Cash balance, beginning Add collections from customers Total cash available Less disbursements ? 96 ?323 71 ? Purchase of inventory Selling and administrative expenses Equipment purchases Dividends 35 4535 30 30 ? 8 8 10 36 ?113 Total disbursements Excess (deficiency) of cash available Financing ? 85? over disbursements 21 Borrowings ? 15 * Repayments (including interest) ) (17) (2) Total financing Cash balance, ending Interest will total $1,000 for the year Required Fill in the missing amounts in the above table