2. Larson company is a retailer that is preparing its budget for the upcoming fiscal year. Management has prepared the following summary of its budgeted cash flows: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total credit sales. $200000 $237500 $203125 $399300 Total cash disbursements ...... $260,000 $230,000 $230,000 $260,000 The company's beginning cash balance for the upcoming fiscal year will be $30,000. Credit sales are collected in the following pattern 80% in the quarter of sales and the remaining in the following quarter. The ending account receivable of the last year was $10000 which will be collected in the first quarter of the upcoming fiscal year. The company requires a minimum cash balance of $20,000 at the end of each quarter. The company may borrow any amount when necessary and may repay its loans (fully or partly, when cash available) at the end of any quarter. Required: Prepare the company's cash budget for the upcoming fiscal year. [06] Set B