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:

The companys beginning cash balance for the upcoming fiscal year will be $18,000. 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 companys cash budget for the upcoming fiscal year. (Repayments, and interest, should be indicated by a minus sign.)

Im confused on what to do next to get the rest of the answer completed. Thanks for any help!

Total cash receipts Total cash disbursements 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 360,000 480,000 410,000 430,000 400,000 37 380,000 70,000 360,000