cash budget

The Churchville YMCA is negotiating a line of credit with their local bank. The bank has asked for a cash budget by quarter for the upcoming year. Under the terms of the loan, - the YMCA must maintain a minimum cash balance of S10,000 - the YMCA may borrow any amount needed - borrowing is made on the last day of each quarter - Interest is paid at an annual rate of 12% and is paid on the last day of the next quarter. (Hint, multiply the amount of unpaid borrowings by 3/12 to determine interest for a quarter). The January 1 balance of the line of credit is zero and there is no interest in the first quarter of the year. The YMCA would like to pay back any amounts borrowed as quickly as possible to minimize interest expense (while still maintaining the $10,000 minimum cash balance). Payments of the loan are made on the last day of the quarter. The following pr Required: Complete the Cash Budget Check figures: The YMCA will hne sero tupaid balance on the line of credit at the end of December and The YMCA December ending cash balance should be $19,700