Assume that Texas Rex's beginning cash balance is $5200.The company requires a $1000 minimum cash balance for the end of each quarter.Money can be borrowed in increments of $1000.Interest is 12% per year.Borrowings take place at the beginning of a quarter and repayments occur at the end of a quarter.

Budgeted depreciation is $540 per quarter for overhead and $150 per quarter for selling and administrative expenses.The company plans to purchase additional screen printing equipment at a cost of $6500 in the first quarter.Corporate income taxes are expected to be $3469 and will be paid at the end of the fourth quarter.

Texas Rex, Inc.

Cash Budget

For the year ending December 31, 2018

Q1 Q2 Q3 Q4 Total

Beginning Cash Balance

Cash Collections _______ _______ ________ _______________

Total Cash Available

Less Cash Payments for:

Raw Materials

Direct Labor

Overhead

S & Adm Expenses

Income Taxes

Equipment _______ _______ ________ _______________

Total Disbursements

Excess (deficiency) of cash

Financing:

Borrowings

Repayments

Interest _______ _______ ________ _______________

Total Financing

Ending Cash Balance