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 $25,000. The company requires a minimum cash balance of $20,000 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.)

1. How much is the Borrowing in 1^st quarter

2. How much is the Excess (deficiency) of cash available in 2^nd quarter

3. What is the Ending Cash Balance in the 4th quarter

4. What is the Total Financing for the Year

1st Quarter2nd Quarter3rd Quarter4th Quarter Total cash receipts $190,000$340,000$220,000$240,000 Total cash disbursements\$267,000 $237,000$227,000$257,000