A cash budget, by quarters, is shown below for a retail company (000 omitted)

A cash budget, by quarters, is shown below for a retail company (000 omitted). The company requires a minimum cash balance of $5,000 to start each quarter. Fill in the missing amounts.

Quarter

1

2

3

4

Year

Cash balance, beginning

$9

Add collections from customers

$125

$391

Total cash available

$85

Less disbursements:

Purchases of inventory

$40

$58

$32

Operating expenses

$42

$54

$180

Equipment purchases

$10

$8

$8

$36

Dividends

$2

$2

$2

$2

Total disbursements

$110

Excess (deficiency) of cash available over disbursements

($3)

$30

Financing:

Borrowings

$20

Repayments ( Including Interest)

($7)

Total Financing

Cash Ending Balance

*Interest will total $4,000 for the year.

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