Handout 8-7 (LO 4) MGG, Inc. needs to maintain a $500 minimum cash balance at all times, and has a credit line to obtain bank loans. The interest rate of bank loans is 12% (1.e., 3% per quarter). We assume that the bank loans are always borrowed or repaid at the end of the quarter and the loans must be repaid as soon as the company has enough money to do so. Complete the following cash budget of MGG, Inc.: | Quarter 1 | Quarter 2 Quarter 3 Quarter 4 Year Beginning cash balance $1.000 Budgeted cash collections 400 1.000 900 2.800 Budgeted cash payments 800 800 3,200 700 300 600 Cash Balance before financing Cash borrowed (repaid) Ending cash balance $500