4. A management accountant was working on a cash budget for Boone Company when he accidentally spilled his coffee. Some of the liquid splattered on his working papers, rendering a few of the amounts illegible. The budget with missing amounts indicated is provided below: Boone Company Cash Budget For the Quarter Ended March 31 January February March Section 1: Cash Receipts Beginning cash balance Add: Cash receipts $ (a) (f) 187,000 6,000 (k) 250,000 Total cash available $ 260,000 (g) (1) Section 2: Cash Payments For inventory purchases For S&A expenses For asset purchases For interest expenses $ 127,000 (b) 37,000 $ 113,000 67,000 37,000 $ 118,500 69,000 37,000 (m) Total disbursements $ 240,000 217,000 $ 225,170 Section 3: Financing Activities Surplus (shortage) Borrowing (repayments) Ending cash balance (c) (h) (i) (n) (p) The company desires to maintain an ending cash balance of at least $7,000 each month. In any month in which there is cash shortage, the company's bank will extend it a loan equal to the shortage amount. The loan is assumed to have been made on the last day of the month. Any time the company has a cash surplus it must repay as much of any outstanding loans as possible. The bank charges monthly interest of 1% on any outstanding loan balance. Required: Compute the missing amounts for items (a) through (p) (show work) (a) $ (i) $ (b) $ (j) $ (c) $ (k) $ (d) $ (1) $ (e) $ (m) $ (f) $ (n) $ (g) $ (0) $ (h) $ (p) S
4. A management accountant was working on a cash budget for Boone Company when he accidentally spilled his coffee. Some of the liquid splattered on his working papers, rendering a few of the amounts illegible. The budget with missing amounts indicated is provided below: Boone Company Cash Budget For the Quarter Ended March 31 January February March Section 1: Cash Receipts Beginning cash balance Add: Cash receipts $ (a) (f) 187,000 6,000 (k) 250,000 Total cash available $ 260,000 (g) (1) Section 2: Cash Payments For inventory purchases For S&A expenses For asset purchases For interest expenses $ 127,000 (b) 37,000 $ 113,000 67,000 37,000 $ 118,500 69,000 37,000 (m) Total disbursements $ 240,000 217,000 $ 225,170 Section 3: Financing Activities Surplus (shortage) Borrowing (repayments) Ending cash balance (c) (h) (i) (n) (p) The company desires to maintain an ending cash balance of at least $7,000 each month. In any month in which there is cash shortage, the company's bank will extend it a loan equal to the shortage amount. The loan is assumed to have been made on the last day of the month. Any time the company has a cash surplus it must repay as much of any outstanding loans as possible. The bank charges monthly interest of 1% on any outstanding loan balance. Required: Compute the missing amounts for items (a) through (p) (show work) (a) $ (i) $ (b) $ (j) $ (c) $ (k) $ (d) $ (1) $ (e) $ (m) $ (f) $ (n) $ (g) $ (0) $ (h) $ (p) S
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter4: Internal Control And Cash
Section: Chapter Questions
Problem 66.1C
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Transcribed Image Text:4. A management accountant was working on a cash budget for Boone Company when he
accidentally spilled his coffee. Some of the liquid splattered on his working papers, rendering a few
of the amounts illegible. The budget with missing amounts indicated is provided below:
Boone Company
Cash Budget
For the Quarter Ended March 31
January
February
March
Section 1: Cash Receipts
Beginning cash balance
Add: Cash receipts
6,000
(f)
187,000
(k)
250,000
$
(а)
$ 260,000
Total cash available
(g)
(1)
Section 2: Cash Payments
For inventory purchases
For S&A expenses
For asset purchases
For interest expenses
$ 113,000
$ 127,000
(b)
$ 118,500
67,000
69,000
37,000
37,000
37,000
(m)
Total disbursements
$ 240,000
$ 217,000
$ 225,170
Section 3: Financing Activities
Surplus (shortage)
Borrowing (repayments)
Ending cash balance
(c)
(d)
(e)
(h)
(n)
(p)
The company desires to maintain an ending cash balance of at least $7,000 each month. In any
month in which there is cash shortage, the company's bank will extend it a loan equal to the
shortage amount. The loan is assumed to have been made on the last day of the month. Any time the
company has a cash surplus it must repay as much of any outstanding loans as possible. The bank
charges monthly interest of 1% on any outstanding loan balance.
Required: Compute the missing amounts for items (a) through (p) (show work)
(а) S
(i) $
(b) $
(j) $
(c) $
(k) $
(d) $
(1) $
(e) $
(m) $
(f) $
(n) $
(g) $
(0) $
(h) $
(p) $
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