EXERCISE 8-7 Cash Budget L08-8 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: Total cash receipts 1st Quarter $180,000 $260.000 2nd Quarter $330.000 $230,000 3rd Quarter $210,000 $220.000 4th Quarter $230.000 $240,000 Total cash disbursements The company's beginning cash balance for the upcoming fiscal year will be $20,000. The company requires a minimum cash Page 1 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 arvy principal at the time it is repaid. For simplicity, assume that interest is not compounded Required: Using schedule 8 as your guide, prepare the company's cash budget for the upcoming fiscal year SCHEDULE 8 G c D Year D E F 1 Hampton Freeze, Inc. 2 Cash Budget 3 For the Year Ended December 31, 2021 4 5 Quarter 6 Schedule 1 2 3 7 Beginning cash balance 8 Add cash receipts $ 42,500 $ 35,000 $, 33,900 $ 165,650 $42.500 9 Collections from customers 1 230000 480.000 740.000 520.000 1970 000 10 Total cash available 272 500 516.000 773.900 685 650 2012500 11 Less cash disbursements: 12 Direct materials 3 49,500 72,300 100,050 79,350 301,200 13 Direct labor 4 84,000 192,000 216,000 114,000 606,000 14 Manufacturing overhead 5 68,000 98,800 103,200 76,000 344,000 15 Seling and administrative 7 107.000 143,000 161,000 125,000 530,000 16 Equipment purchases 50,000 40,000 20.000 20,000 130,000 17 Dividends 8.000 8.000 8.000 8.000 32.000 18 Total cash disbursements 300 500 552100 609 250 472350 1.949 200 19 Excess (deficiency) of cash available over disbursements (94.000) (30.100) 165 650 203300 63.300 20 Financing 21 Borrowings (at the beginnings of quarters) 130.000 70,000 200,000 22 Repayments (at end of the year) (200,000) (200,000) 23 interest 1000) 21.00 24 Tots financing 130.000 70.000 021.900) (21000) 25 Ending cash balance $20.000 $33.600 $ 165,650 $4140041400 20 Schedules Schedule Schede 10 Source Microsoft Excel