Question
Topper, Inc. prepared the following cash budget for the fourth quarter. Fill in the missing amounts, assuming that Topper desires to maintain a $15,000 minimum
Topper, Inc. prepared the following cash budget for the fourth quarter. Fill in the missing amounts, assuming that Topper desires to maintain a $15,000 minimum monthly cash balance and all equipment was purchased during December. Any required borrowings and repayments must be made in even increments of $1,000.
October | November | December | Quarter | ||||
---|---|---|---|---|---|---|---|
Beginning cash balance | $enter a dollar amount | $15,500 | $enter a dollar amount | $16,500 | |||
Collections from sales | 55,000 | enter a dollar amount | enter a dollar amount | 238,600 | |||
Total cash available | 71,500 | 96,000 | 120,000 | enter a total amount for the first part | |||
Less disbursements | |||||||
Materials purchases | enter a dollar amount | 10,000 | 14,000 | 36,000 | |||
Direct labor | 5,000 | 6,000 | 8,000 | 19,000 | |||
Manufacturing overhead | 20,000 | 23,000 | 22,000 | enter a dollar amount | |||
Selling & administrative expenses | 29,000 | 30,000 | enter a dollar amount | enter a dollar amount | |||
Equipment purchase | enter a dollar amount | 15,000 | |||||
Dividends | 5,000 | 5,000 | |||||
Total disbursements | 66,000 | enter a total amount for section one | enter a total amount for section one | enter a total amount for section one | |||
Excess (deficiency) of cash | enter a total amount for the second part | 27,000 | enter a total amount for the second part | enter a total amount for the second part | |||
Minimum cash balance | 15,000 | 15,000 | 15,000 | enter a dollar amount | |||
Cash available (needed) | -9,500 | enter a total amount for the third part | 9,000 | enter a total amount for the third part | |||
Financing: | |||||||
Borrowings | enter a dollar amount | 10,000 | |||||
Repayments | enter a dollar amount | -10,000 | |||||
Interest | -100 | -100 | |||||
Total financing | enter a total amount for section two | -10,100 | -100 | ||||
Ending cash balance | $15,500 | $16,900 | $enter a total amount | $enter a total amount |
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