Exercise 8-7 (Algo) Cash Budget [LO8-8] Garden Depot is a retailer that is preparing its budget for the upcoming fiscal year. Management has prepared the following summary of its budgeted cash flows: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total cash receipts $ 300,000 $420,000 $ 350,000 $ 370,000 Total cash disbursements $ 358,000 $328,000 $ 318,000 $ 338,000 The company's beginning cash balance for the upcoming fiscal year will be $35,000. The company requires a minimum cash balance of $10,000 and may borrow any amount needed from a local bank at a quarterly Interest rate of 3%. 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. Interest payments are due on any principal at the time it is repaid. For simplicity, assume that Interest is not compounded. Required: Prepare the company's cash budget for the upcoming fiscal year. (Repayments and Interest should be indicated by a minus slgn.) Year Answer is complete but not entirely correct. Garden Depot Cash Budget 1st 2nd 3rd 4th Quarter Quarter Quarter Quarter Beginning cash balance $ 35.000 s 10,000 $ 67,020 S 99,020 Total cash receipts 300.000 420,000 350,000 370,000 Total cash available 335.000 430,000 417,020 409,020 Total cash disbursements 358.000 328,000 318.000 338.000 Excess (deficiency) of cash available over disbursements (23,000) 102,000 99,020 131,020 Financing Borrowings 33.000 0 0 0 Repayments 0 33,000 X 0 0 Interest 1.080 X 0 0 Total financing 33.000 34.980 0 0 Ending cash balance s 10.000 $ 136,980 Is 99,020 S 131,020 $ 211.040 X 1.440.000 1.651,040 1.342.000 309,404 33,000 33,000 X CO SCO 1.980 (1.080) $ 307,060