ABC Company is preparing its budget for the upcoming fiscal year. Accountant has prepared the following summary of its budgeted cash flows:

1st Quarter Total cash receipts $170,000 Cash disbursements for purchase of inventory $250,000

2nd Quarter Total cash receipts: $320,000 Cash disbursements for purchase of inventory: $220,000

3rd Quarter Total cash receipts: $222,000 Cash disbursements for purchase of inventory: $230,000

4th Quarter Total cash receipts: $250,000 Cash disbursements for purchase of inventory: $250,000

The companys beginning cash balance for the upcoming fiscal year will be $18,000. The company requires a minimum cash balance of $12,000 and may borrow any amount needed from a local bank at a quarterly interest rate of 4%. 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 soonest. Interest payments are due on any principal at the time it is repaid. For simplicity, assume that interest is simple.

Additional information: 1) Dividend $2,000 will be paid in the second quarter; 2) Equipment $10,000 will be purchased for cash in second quarter.

Required:

Prepare a Cash Budget showing the captions with figures of beginning, available, excess/(deficiency), ending balance and so on for the first and second quarters.