Hipster Company requires a minimum cash balance of $3,400. When the company expects a cash deficiency, it borrows the exact amount required on the first of the month. Expected excess cash is used to repay any amounts owed. Interest owed from the previous month's principal balance is paid on the first of the month at 10% per year. The company has already completed the budgeting process for the first quarter for cash receipts and cash payments for all expenses except interest. (Click the icon to view the completed budget information.) Hipster does not have any outstanding debt on January 1. Complete the cash budget for the first quarter for Hipster Company. Round interest expense to the nearest whole dollar. Begin by preparing the cash budget for January, then prepare the cash budget for February and March. Finally, prepare the totals for the quarter. (Complete all answer boxes. Enter a "0" for any zero balances. Round all amounts entered into the cash budget to the nearest whole dollar. Enter a cash deficiency and/or negative effects of financing with a minus sign or parentheses.) Hipster Company Cash Budget For the Three Months Ended March 31 January Beginning cash balance 3,400 Cash receipts 20,500 Cash available 23,900Hipster Company Cash Budget For the Three Months Ended March 31 January February March Total Beginning cash balance 3,400 Cash receipts 20,500 27,000 41,000 88,500 Cash available 23,900 Cash payments: All expenses except interest 32,000 31,000 34,000 97,000 Interest expense 0 Total cash payments 32,000 Ending cash balance before fi nancing Minimum cash balance desired (3,400) (3,400) (3,400) (3,400) Projected cash excess (defi ciency) Financing:Financing: Borrowing Principal repayments Total effects of financing Ending cash balanceHipster Company requires a minimum cash balance of $3,400. When the company expects a cash deficiency, it borrows the exact amount required on the first of the month. Expected excess cash is used to repay any amounts owed. Interest owed from the previous month's principal balance is paid on the first of the month at 10% per year. The company has already completed the budgeting process for the first quarter for cash receipts and cash payments for all expenses except interest. (Click the icon to view the completed budget information.) Hipster does not have any outstanding debt on January 1. Complete the cash budget for the first quarter for Hipster Company. Round interest expense to the nearest whole dollar. Cash available 23,900 Cash payments: All expenses except interest 32,000 Interest expense Total cash payments 32,000 Ending cash balance before fi nancing Minimum cash balance desired (3,400) Projected cash excess (defi ciency) Financing: Borrowing Principal repayments Total effects of financing Endina cash balance Enter any number in the edit fields and then click Check
