Question

Swifty, Inc. prepared the following cash budget for the fourth quarter. Fill in the missing amounts, assuming that Swifty 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. (Enter answers in necessary fields only. Leave other fields blank. Do not enter 0.)

			October	November	December	Quarter
	Beginning cash balance		$	$15,100	$	$16,100
	Collections from sales		55,980			242,380
	Total cash available		72,080	97,770	124,470
	Less disbursements
	Materials purchases			9,620	14,080	35,630
	Direct labor		5,240	6,200	7,860	19,300
	Manufacturing overhead		19,920	22,380	21,930
	Selling & administrative expenses		28,890	29,740
	Equipment purchase					14,750
	Dividends				4,970	4,970
	Total disbursements		65,980
	Excess (deficiency) of cash			29,830
	Minimum cash balance		15,000	15,000	15,000
	Cash available (needed)		-8,900		14,950
	Financing:
	Borrowings					9,000
	Repayments					-9,000
	Interest			-90		-90
	Total financing			-9,090		-90
	Ending cash balance		$15,100	$20,740	$	$

Answer 1

	October	November	December	Quarter
Beginning cash balance	16,100	15,100	20,740	16,100
Collections from sales	55,980	82,670	103,730	242,380
Total cash available	72,080	97,770	124,470	258,480
Less disbursements
Materials purchases	11,930	9,620	14,080	35,630
Direct labor	5,240	6,200	7,860	19,300
Manufacturing overhead	19,920	22,380	21,930	64,230
Selling & administrative expenses	28,890	29,740	30,930	89,560
Equipment purchase			14,750	14,750
Dividends			4,970	4,970
Total disbursements	65,980	67,940	94,520	228,440
Excess (deficiency) of cash	6,100	29,830	29,950	30,040
Minimum cash balance	15,000	15,000	15,000	15,000
Cash available (needed)	(8,900)	14,830	14,950	15,040
Financing:
Borrowings	9,000			9,000
Repayments		(9,000)		(9,000)
Interest		(90)		(90)
Total financing	9,000	(9,090)		(90)
Ending cash balance	15,100	20,740	29,950	29,950