1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total cash receipts $ 260,000 $ 410,000 $ 290,000 $ 310,000 Total cash disbursements $ 316,000 $
| 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | |||||
| Total cash receipts | $ | 260,000 | $ | 410,000 | $ | 290,000 | $ | 310,000 |
| Total cash disbursements | $ | 316,000 | $ | 286,000 | $ | 276,000 | $ | 296,000 |
The companys beginning cash balance for the upcoming fiscal year will be $36,000. The company requires a minimum cash balance of $10,000 and may borrow any amount needed from a local bank at a quarterly interest rate of 3%. The company may borrow any amount at the beginning of any quarter and may repay its loans, or any part of its loans, at the end of any quarter. Interest payments are due on any principal at the time it is repaid. For simplicity, assume that interest is not compounded.
Required:
Prepare the companys cash budget for the upcoming fiscal year. (Repayments, and interest, should be indicated by a minus sign.)
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Authors: Douglas J. McQuaig, Patricia A. Bille
6th Edition
0395796997, 978-0395796993
