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: 1st 2nd 3rd 4th Quarter Quarter Quarter Quarter Total cash receipts $350,000 $470,000 $400, eee $420,000 Total cash $393, eee $363,eee disbursements $353,000 $373,800 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 (Cash deficiency, repayments and interest should be indicated by a minus sign.) Year Answer is complete but not entirely correct. Garden Depot Cash Budget 1st 2nd 3rd 4th Quarter Quarter Quarter Quarter $ 20,000 $ 10,000 $ 83,753 130,753 350,000 470,000 400,000 420,000 370,000 480,000 483,753 550,753 393,000 363,000 353,000 373,000 (23,000) 117,000 130,753 177,753 $ 20,000 1.640,000 1,660,000 1,482,000 178,000 > SCC Beginning cash balance Total cash receipts Total cash available Total cash disbursements Excess (deficiency) of cash available over disbursements Financing Borrowings Repayments Interest Total financing Ending cash balance > 33,000 x X X X X X 33,000 248 33,248 $ 150,248 33,000 33,000 248 66.248 $ 244 248 33,000 $ 10,000 0 $ 130,753 0 $ 177.753