Fir Budgeted un tive expenses include advertising expenses of $8.000 per quarter, executive salaries of $35.00 per quarter, The company variable selling and administrative expense per unit is $2.50, Fixed selling and administre and depreciation of $20,000 per quarter. In addition, the company will make insurance payments of $5,00 in the first quarter and $5,000 in the third quarter. Finally, property taxes of $8,000 will be paid in the sec ond quarter Required: Prepare the company's selling and administrative expense budget for the upcoming fiscal year, EXERCISE 7-7 Cash Budget (L07-8) Garden Depot is a retailer that is preparing its budget for the upcoming fiscal year. Management has pared the following summary of its budgeted cash flows: pre- TAKE TWO 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 receipts Total cash disbursements SI5.000 The company's beginning cash balance for the upcoming fiscal year will be $20,000. The company requires a minimum cash balance of S10.000 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 muy 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. LOR M ACCT 230 - Chapter 7 Homework Exercise 7.7 Cash Budget Yeo 3rd Quarter 4th Quarter Beginning cash balance Ist Quarter 520.000 2nd Quarter $10.000 Total cash receipts 180.000 350.000 3210.00 $130.00 Total cash available 200.000 340.000 Per Less total cash disbursements 260.000 230.000 230.030 240.000 Excess deficiency of cash 110.000 er Financing: 70.000 Borrowings (at beginning of quarter) 70,000 Repayments (at end of quarter) Interest 14.20 Total financing 70,000 15.500 3.10.000 5.35.800 Ending cash balance ACCT 230 Darla Kay Karnes - Chapter 7