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A cash budget, by quarters, is given below for a retail company (000 omitted). The company requires a minimum cash balance of $10,000 to start each quarter.

Required:
Fill in the missing amounts.

Note: Enter your answers in thousands of dollars. Cash deficiencies and Repayments should be indicated by a minus sign.

Let's work through filling out the missing amounts in the cash budget table, considering the details given.

1. **Quarter 1:**

   - Cash balance, beginning: $7
   - Collections from customers: Unknown, but we can solve based on total cash available.

   \[
   \text{Total cash available} = 72 \quad (\text{given})
   \]

   \[
   \text{Collections from customers} = \text{Total cash available} - \text{Cash balance, beginning}
   \]
   \[
   = 72 - 7 = 65
   \]
   
   Therefore, collections from customers for **Q1** is $65.

   **Total disbursements** for Quarter 1:
   \[
   \text{Total disbursements} = 52 (\text{purchase of inventory}) + 45 (\text{selling and administrative expenses}) + 15 (\text{equipment purchases}) + 2 (\text{dividends}) = 114
   \]

   **Excess (deficiency) of cash available over disbursements**:
   \[
   \text{Excess} = 72 - 114 = -42
   \]

   This is a cash deficiency, so the company borrows to meet the cash shortfall and achieve a minimum ending balance of $10:
   \[
   \text{Cash balance, ending} = 10 \quad (\text{company minimum})
   \]
   Therefore, the financing required (borrowings) is:
   \[
   \text{Financing} = \text{Cash balance, ending} - \left(\text{Excess} + \text{Cash balance, beginning}\right)
   \]
   \[
   = 10 - (-42) = 52
   \]

   Thus, borrowings for Quarter 1 are $52.

2. **Quarter 2:**
   
   - Cash balance, beginning: $10 (this is the ending balance from Quarter 1).
   - Collections from customers: Unknown, but we can solve based on total cash available.
   
   \[
   \text{Total disbursements for Q2} = 62 (\text{purchase of inventory}) + 30 (\text{selling and administrative expenses}) + 9 (\text{equipment purchases}) + 2 (\text{dividends}) = 103
   \]

   The **total cash available** is missing, but to meet the minimum cash requirement of $10 at the end of the quarter, we solve for the collections from customers:
   \[
   \text{Excess (deficiency)} = \text{Total cash available} - 103
   \]

   Since there is no borrowing for this quarter, the cash balance after disbursements should meet the company's needs without additional financing:
   \[
   \text{Cash balance, ending} = 113 \quad (\text{given for Q3})
   \]
   
   Therefore, we solve for the **collections** by equating cash balance and accounting for disbursements:
   \[
   \text{Total cash available} = 103 + (113 - 10) = 206
   \]

   Therefore, collections from customers for **Q2** is:
   \[
   \text{Total cash available} - \text{Cash balance, beginning} = 206 - 10 = 196
   \]

Thus, the missing amounts are:

- Collections from customers Q1: 65
- Borrowings Q1: 52
- Collections from customers Q2: 196

Would you like further clarification or details on the process?

Here are five related questions you can explore:
1. What is the impact of borrowings on the company's cash flow?
2. How would increased equipment purchases affect the cash budget?
3. How can cash collections be forecasted more accurately in future quarters?
4. What strategies can be used to reduce the need for borrowings?
5. How do dividends affect the company's ability to meet its cash requirements?

**Tip**: Always maintain a minimum cash balance in your projections to avoid last-minute borrowings.

A cash budget, by quarters, is given below for a retail company (000 omitted). The company requires a minimum cash balance of $10,000 to start each quarter. Required: Fill in the missing amounts.

Learn how to calculate missing amounts in a quarterly cash budget for a retail company. Explore financial analysis techniques such as cash collections, disbursements, and financing with a detailed cash flow table. Suitable for business students and financial accountants.

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