Question
Question 7.1 (Total: 24 marks) A cash budget, by quarter, is given below for a retail company (000 omitted). The company requires a minimum cash
Question 7.1 (Total: 24 marks)
A cash budget, by quarter, is given below for a retail company (000 omitted). The company requires a minimum cash balance of $5,000 to start each quarter.
Required:
- Fill in the missing amounts in the table that follows:
Quarter | ||
1 | 2 | |
Cash balance, beginning | $6 | $? |
Add collections from customers | ? | ? |
Total cash available | 71 | ? |
Less disbursements: | ||
Purchase of inventory | 35 | 45 |
Selling and administrative expenses | ? | 30 |
Equipment purchases | 8 | 8 |
Dividends | 2 | 2 |
Total disbursements | ? | 85 |
Excess (deficiency) of cash available over disbursements | (2) | ? |
Financing: | ||
Borrowings | ? | 15 |
Repayments* | - | - |
Total financing | ? | ? |
Cash balance, ending | $? | $? |
*For this exercise, assume there will be no interest on any borrowings. |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Auditing Cases An Active Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
2nd Edition
0130674842, 978-0130674845
