Teresa's Bicycle Shop

Prepare the capital budget given the following:

Payments on accounts payable $$65,000$

Purchase of offie supplies $16,000$

Purchase of employee meals $1,200$

Purchase of new truck $54,000$

Purchase of tractor $97,000$

Payment for raw materials $47,000$

Payment for building expansion $380,000$

Payment for ongoing expenses $641,000$

Total Cash disbursements $$1,301,200$

Select which items are needed for the capital budget and prepare it$.$

Prepare a financing budget $($borrowing$)$ giving the following

Consider total cash disbursements above.

Estimated Beginning Cash $$1,100,000$

Desired Ending Cash $980,000$

Calculate amount of cash that needs to be borrowed.

Show your work on all calculations.