A management accountant was working on a cash budget for Oklahoma Company when he accidentally spilled his coffee. Some of the liquid splattered on his working papers, rendering a few of the amounts illegible. The budget with missing amounts indicated is provided below: Oklahoma CompanyCash BudgetFor the Quarter Ended March 31 January February MarchSection 1: Cash Receipts Beginning cash balance$7,500 (f) (k) Add: Cash receipts (a) 187,500 255,000 Total cash available$262,500 (g) (l) Section 2: Cash Payments For inventory purchases$127,500 $112,500 $118,500 For S&A expenses (b) 67,500 69,000 For asset purchases 37,500 37,500 37,500 For interest
expenses 0 0 (m) Total disbursements$240,000 $217,500 $225,150 Section 3: Financing Activities Surplus (shortage) (c) (h) (n) Borrowing (repayments) (d) (i) (o) Ending cash balance (e) (j) (p) The company desires to maintain an ending cash balance of at least $7,500 each month. In any month in which there is cash shortage, the company's bank will extend it a loan equal to the shortage amount. The loan is assumed to have been made on the last day of the month. Any time the company has a cash surplus it must repay as much of any outstanding loans as possible. The bank charges monthly interest of 1% on any outstanding loan balance.Required:Compute the missing amounts for items (a) through (p).
What will be an ideal response?
| (a) | $ | 255,000 | (i) | $ | 15,000 | ||
| (b) | $ | 75,000 | (j) | $ | 7,500 | ||
| (c) | $ | 22,500 | (k) | $ | 7,500 | ||
| (d) | 0 | (l) | $ | 262,500 | |||
| (e) | $ | 22,500 | (m) | $ | 150 | ||
| (f) | $ | 22,500 | (n) | $ | 37,350 | ||
| (g) | $ | 210,000 | (o) | $ | (15,000 | ) | |
| (h) | $ | (7,500 | ) | (p) | $ | 22,350 |
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