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 $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)
	1	2	3	4	Year
Cash balance, beginning	$7
Add collections from customers			97		335
Total cash available	80
Less disbursements:
Purchase of inventory	36	46		28
Selling and administrative expenses		30	30		117
Equipment purchases	7	10	11		38
Dividends	2	2	2	2
Total disbursements		88
Excess (deficiency) of cash available over disbursements	(2)		17
Financing:
Borrowings		16
Repayments (including interest) *				(18)
Total financing
Cash balance, ending
*Interest will total $1,000 for the year.

Quarter (000 omitted) 1 2 3 4 Year Cash balance, beginning $7 Add collections from customers 97 335 Total cash available 80 Less disbursements: Purchase of inventory 36 46 28 Selling and administrative expenses 30 30 117 Equipment purchases 7 10 11 38 Dividends 2 2 2 2 Total disbursements 88 Excess (deficiency) of cash available over disbursements (2) 17 Financing: Borrowings 16 Repayments (including interest) * (18) Total financing Cash balance, ending *Interest will total $1,000 for the year.