Shoe Mart Inc.

Cash Budget

For the Three Months Ending March $31$

January February March

Estimated cash receipts from:

Cash sales $fill in the blank $50215$e$028$f$8$c$01$b$\_1$

$16,680$

$fill in the blank $50215$e$028$f$8$c$01$b$\_2$

$20,400$

$fill in the blank $50215$e$028$f$8$c$01$b$\_3$

$28,560$

Collection of accounts receivable fill in the blank $50215$e$028$f$8$c$01$b$\_4$

fill in the blank $50215$e$028$f$8$c$01$b$\_5$

fill in the blank $50215$e$028$f$8$c$01$b$\_6$

Dividends fill in the blank $50215$e$028$f$8$c$01$b$\_7$

$4,200$

fill in the blank $50215$e$028$f$8$c$01$b$\_8$

$0\mathrm{.}00$

fill in the blank $50215$e$028$f$8$c$01$b$\_9$

$0\mathrm{.}00$

Total cash receipts $fill in the blank $50215$e$028$f$8$c$01$b$\_10$

$fill in the blank $50215$e$028$f$8$c$01$b$\_11$

$fill in the blank $50215$e$028$f$8$c$01$b$\_12$

Estimated cash payments for:

Manufacturing costs $fill in the blank $50215$e$028$f$8$c$01$b$\_13$

$fill in the blank $50215$e$028$f$8$c$01$b$\_14$

$fill in the blank $50215$e$028$f$8$c$01$b$\_15$

Selling and administrative expenses fill in the blank $50215$e$028$f$8$c$01$b$\_16$

$40,000$

fill in the blank $50215$e$028$f$8$c$01$b$\_17$

$46,000$

fill in the blank $50215$e$028$f$8$c$01$b$\_18$

$52,000$

Capital expenditures fill in the blank $50215$e$028$f$8$c$01$b$\_19$

$0\mathrm{.}00$

fill in the blank $50215$e$028$f$8$c$01$b$\_20$

$0\mathrm{.}00$

fill in the blank $50215$e$028$f$8$c$01$b$\_21$

$57,000$

Other purposes:

Note payable $($including interest$)$ fill in the blank $50215$e$028$f$8$c$01$b$\_22$

$0\mathrm{.}00$

fill in the blank $50215$e$028$f$8$c$01$b$\_23$

$0\mathrm{.}00$

fill in the blank $50215$e$028$f$8$c$01$b$\_24$

$72,100$

Income tax fill in the blank $50215$e$028$f$8$c$01$b$\_25$

$0\mathrm{.}00$

fill in the blank $50215$e$028$f$8$c$01$b$\_26$

$20,000$

fill in the blank $50215$e$028$f$8$c$01$b$\_27$

$0\mathrm{.}00$

Dividends fill in the blank $50215$e$028$f$8$c$01$b$\_28$

$0\mathrm{.}00$

fill in the blank $50215$e$028$f$8$c$01$b$\_29$

$0\mathrm{.}00$

fill in the blank $50215$e$028$f$8$c$01$b$\_30$

$6,000$

Total cash payments $fill in the blank $50215$e$028$f$8$c$01$b$\_31$

$fill in the blank $50215$e$028$f$8$c$01$b$\_32$

$fill in the blank $50215$e$028$f$8$c$01$b$\_33$

Cash increase $($decrease$)$ $fill in the blank $50215$e$028$f$8$c$01$b$\_34$

$fill in the blank $50215$e$028$f$8$c$01$b$\_35$

$fill in the blank $50215$e$028$f$8$c$01$b$\_36$

Cash balance at beginning of month fill in the blank $50215$e$028$f$8$c$01$b$\_37$

$53,000$

fill in the blank $50215$e$028$f$8$c$01$b$\_38$

fill in the blank $50215$e$028$f$8$c$01$b$\_39$

Cash balance at end of month $fill in the blank $50215$e$028$f$8$c$01$b$\_40$

$fill in the blank $50215$e$028$f$8$c$01$b$\_41$

$fill in the blank $50215$e$028$f$8$c$01$b$\_42$

Minimum cash balance fill in the blank $50215$e$028$f$8$c$01$b$\_43$

fill in the blank $50215$e$028$f$8$c$01$b$\_44$

fill in the blank $50215$e$028$f$8$c$01$b$\_45$

Excess $($deficiency$)$ $fill in the blank $50215$e$028$f$8$c$01$b$\_46$

$fill in the blank $50215$e$028$f$8$c$01$b$\_47$

fill in the blank $50215$e$028$f$8$c$01$b$\_48$

Question Content Area

$2.$ The budget indicates that the minimum cash balance will not be maintained in March. This is due primarily to which of the following causes?

Capital expenditures

Note repayment

Depreciation

Income taxes

Decreased collection of accounts receivable

Select the correct answer

I and II only.