Chapter 8, Problem 11E

EXERCISE 8-11 Cash Budget Analysis LOB-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.
Quarter

	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	7	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 (or the year.

Required:

Fill in the missing amounts in the above table.