Exercise 8-7 (Static) 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 Total cash disbursements Ist Quarter $ 180,000 $ 260,000 2nd Quarter $ 330,000 $ 230,000 Bed Quarter $ 210,000 $ 220,000 4th Quarter $ 230,000 $ 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.) Garden Depot Cash Budget 1st Quarter 2nd Quartet 3rd Quarter 4th Quarter $ 15,000 5 16.000 5 14,000 $13,000 $ 58,000 3 3 3 15.003 16.003 14.003 13.003 145.000 37.500 40.000 35.000 22.000 (22.497 (23,997) (20.997) 13.0031 140.000 Beginning cash balance Total cocheceipts Total catch available Total cash disbursements Excess deficiency of cash available over disbursements Financing Borowing Repayments Interest Total Thancing Ending cash balance 8 000 71 000 63.000 63.000 270,000 415,000 30.000 335 500 60.000 545,5035 71.000 68.000 63.000 47.003 5 47,003 5 76003