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. 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	2	3	4	Year
Cash balance, beginning	$6
Add collections from customers			96		323
Total cash available	71
Less disbursements:
Purchase of inventory	35	45		35
Selling and administrative expenses		30	30		113
Equipment purchases	8	8	10		36
Dividends	2	2	2	2
Total disbursements		85
Excess (deficiency) of cash available over disbursements	(2)		11
Financing:
Borrowings		15
Repayments (including interest)*				(17)
Total financing
Cash balance, ending
*Interest will total $1,000 for the year.