5. Cash Budget: JUL AUG SEP Q3 Cash Balance, Beginning $100,000 Add Cash Collections 565,000 Total Cash Available $665,000 Less Cash Disbursements: For Inventory Purchases 225,100 For Operating Expenses 194,500 For Land Purchases 180,000 For Dividends 0 Total Cash Disbursements $599,600 Excess (Deficiency) of Cash Financing: $ 65,400 Borrowed from Bank Principal Repayment Interest Paid Cash Balance, Ending $ 34,600 0 0 $100,000 In the Financing section, recall that all borrowings are made at the beginning of the month and all principal repayments are made at the end of the month. Interest is only paid for the amount accrued at the time of a principal repayment. However, interest expense and interest payable will need to be recognized in the interim.