A company has the following excess (deficiency) of cash receipts over cash disbursements projected for the...

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A company has the following excess (deficiency) of cash receipts over cash disbursements projected for the next year on a quarterly basis. It will not have any cash at the start of the year. The quarterly interest rate is 2%, and any borrowing and repayment of principal must be in round $1,000 amounts. There is no cash reserve requirement. Assume loan related payments are made when excess cash is available. Excess (deficiency) of cash available over disbursements Quarter 1 2 3 4 Year $ (121,140) $(41,680) $177,680 $2,160 $17,020 Required: 1. Prepare a cash budget by quarter and for the year. (Any "Repayments", "Interest" and "Deficiency of cash" should be indicated by a minus sign.) Cash balance, beginning Cash Budget 1 Quarter 3 Year Excess (deficiency) of cash available over disbursements Balance available for repayment (required borrowing) $ 0 $ 0 $ 0 $ 0 $ 0 Financing: Amount borrowed (beginning of period) Principal repaid Interest paid Total financing (or repayments for the period) $ 0 $ 0 $ 0 $ Cash balance, ending 2. What is the ending cash balance in the fourth quarter if interest is accrued until the end of the fourth quarter and paid at that time along with the the total principal borrowed? Ending cash balance A company has the following excess (deficiency) of cash receipts over cash disbursements projected for the next year on a quarterly basis. It will not have any cash at the start of the year. The quarterly interest rate is 2%, and any borrowing and repayment of principal must be in round $1,000 amounts. There is no cash reserve requirement. Assume loan related payments are made when excess cash is available. Excess (deficiency) of cash available over disbursements Quarter 1 2 3 4 Year $ (121,140) $(41,680) $177,680 $2,160 $17,020 Required: 1. Prepare a cash budget by quarter and for the year. (Any "Repayments", "Interest" and "Deficiency of cash" should be indicated by a minus sign.) Cash balance, beginning Cash Budget 1 Quarter 3 Year Excess (deficiency) of cash available over disbursements Balance available for repayment (required borrowing) $ 0 $ 0 $ 0 $ 0 $ 0 Financing: Amount borrowed (beginning of period) Principal repaid Interest paid Total financing (or repayments for the period) $ 0 $ 0 $ 0 $ Cash balance, ending 2. What is the ending cash balance in the fourth quarter if interest is accrued until the end of the fourth quarter and paid at that time along with the the total principal borrowed? Ending cash balance

Answer rating: 100% (QA)

1 Prepare a cash budget by quarter and for the year Cash Budget Quarter 1 2 3 4 Y... View the full answer