1Data Table Hoppy Company Cash Budget For the Three Months Ended March 31 January February March Total Beginning cash balance Cash receipts Cash available Cash payments: 3,500 19,000 22,500 27,500 42,000 88,500 All expenses except interest 108,000 34,000 0 34,000 35,000 39,000 Interest expense Total cash payments Ending cash balance before financing Minimum cash balance desired Projected cash excess (deficiency) Financing (3,500) (3,500) (3,500) (3,500) Print Hoppy Company requires a minimum cash balance of $3,500. When the company expects a cash deficiency, it borrows the exact amount required on the first of the month. Expected excess cash is used to repay any amounts owed. Interest owed from the previous month's principal balance is paid on the first of the month at 14% per year. The company has already completed the budgeting process for the first quarter for cash receipts and cash payments for all expenses except interest. (Click the icon to view the completed budget information.) Hoppy does not have any outstanding debt on January 1. Complete the cash budget for the first quarter for Hoppy Company. Round interest expense to the nearest whole dollar Begin by preparing the cash budget for January, then prepare the cash budget for February and March. Finally, prepare the totals for the quarter. (Complete all answer boxes. Enter a "O" for any zero balances. Round all amounts entered into the cash budget to the nearest whole dollar. Enter a cash deficiency and/or negative effects of financing with a minus sign or parentheses.) Hoppy Company Cash Budget For the Three Months Ended March 31 January February March Total Beginning cash balance Cash receipts Cash available Cash payments 3,500 19,000 22,500 27,500 42,000 88,500 All expenses except interest 34,000 35,000 39,000 108,000 Interest expense Hoppy Company requires a minimum cash balance of $3,500. When the company expects a cash deficiency, it borrows the exact amount required on the first of the month. Expected excess cash is used to repay any amounts owed. Interest owed from the previous month's principal balance is paid on the first of the month at 14% per year. The company has already completed the budgeting process for the first quarter for cash receipts and cash payments for all expenses except interest. (Click the icon to view the completed budget information.) Hoppy does not have any outstanding debt on January 1. Complete the cash budget for the first quarter for Hoppy Company. Round interest expense to the nearest whole dollar Cash available Cash payments 22,500 All expenses except interest 34,000 35,000 39,000 108,000 Interest expense Total cash payments Ending cash balance before financing Minimum cash balance desired Projected cash excess (deficiency) Financing 34,000 (3,500) (3,500) (3,500) (3,500) Borrowing Principal repayments Total effects of financing Ending cash balance
