The Churchville YMCA is negotiating a line of credit with their local bank. The bank has asked for a cash budget by quarter for the upcoming year. Under the terms of the loan,

• the YMCA must maintain a minimum cash balance of $ 10,000
• the YMCA may borrow any amount needed borrowing is made on the last day of each quarter
• Interest is paid at an annual rate of 12% and is paid on the last day of the next quarter. (Hint, multiply the amount of unpaid borrowings by 3/12 to determine interest for a quarter). The January 1 balance of the line of credit is zero and there is no interest in the first quarter of the year.

The YMCA would like to pay back any amounts borrowed as quickly as possible to minimize interest expense (while still maintaining the $ 10,000 minimum cash balance). Payments of the loan are made on the last day of the quarter.

The following projections are provided by the UMCAs bookkeeper:

	Jan-Mar.	Apr-June	July-Sept	Oct. Dec.
Cash Received from Members	$ 180,000	290,000	220,300	260,000
Cash Disbursements:
Salaries	110,000	120,000	115,000	120,000
Operating Expenses	95,000	107,900	105,000	107,000
Equipment Purchases	55,000			13,000
Total Cash Disbursements	$ 260,000	227,900	220,000	240,000

Required: Complete the Cash Budget.