Exercise 8-7 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: 37:12 Total cash receipts Total cash disbursements 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter $ 180,000 $ 330,000 $ 210,000 $ 230,000 $ 260,000 $ 230,000 $ 220,000 $ 240,000 The company's beginning cash balance for the upcoming fiscal year will be $20,000. 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 sign.) Quarter Answer is complete and correct. Garden Depot Cash Budget 1st 2nd 3rd 4th Quarter Quarter Year Quarter Beginning cash balance $ 20,000 $10,000 $ 35,800 $ 25,800 $ 20,000 Total cash receipts 180,000 330,000 210,000 230,000 950,000 Total cash available 200,000 340,000 245,800 255,800 970,000 Total cash disbursements 260,000 230,000 220,000 240,000 950,000 Excess (deficiency) of cash available over disbursements (60,000) 110,000 25,800 15,800 20,000 Financing Borrowings 70,000 70,000 Repayments (70,000) (70.000) Interest (4.200) (4.200) Total financing 70,000 (74,200) 0 0 (4.200) Ending cash balance $ 10,000 $ 35,800 $ 25,800 $ 15,800 $ 15,800