Question

Sheridan, Inc. prepared the following cash budget for the fourth quarter. Fill in the missing amounts, assuming that Sheridan 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		$	$15,930	$	$16,020
	Collections from sales		55,850			241,890
	Total cash available		71,870	98,020	125,900
	Less disbursements
	Materials purchases			8,600	13,610	33,610
	Direct labor		5,190	5,460	8,060	18,710
	Manufacturing overhead		20,200	22,470	21,570
	Selling & administrative expenses		29,150	29,440
	Equipment purchase					15,340
	Dividends				5,060	5,060
	Total disbursements		65,940
	Excess (deficiency) of cash			32,050
	Minimum cash balance		15,000	15,000	15,000
	Cash available (needed)		-9,070		15,990
	Financing:
	Borrowings					10,000
	Repayments					-10,000
	Interest			-100		-100
	Total financing			-10,100		-100
	Ending cash balance		$15,930	$21,950	$	$

Answer 1

The missing amount is shown below with the help of a spreadsheet:-

with the help of given formulas:-