The company borrows and repays from an open line of credit in round $100 amounts. Loan related payments are made in periods when cash is available with interest paid on only the portion of any principal being repaid. The current balance (principal plus accrued interest) in the line of credit account is $3,536 for the borrowing that occurred in the last quarter of the previous year. The annual interest rate is 16%. A minimum cash reserve of $600 must be maintained each quarter. The opening balance for the year is expected to be $1,580. Required: Prepare a cash budget assuming that terms of borrowing require payment of principal after four quarters have elapsed since receiving a loan, and that interest is accrued until then and repaid along with the principal. What interest expense and interest payable will be reported on the income statement for the year? Any borrowing will take place at the beginning of a quarter, and any repayments will be made at the end of a quarter. (Any "Repayments", "Interest" and "Deficiency of cash" should be indicated by a minus sign.) Zeena Company Cash Budget For the Year Ended Decomber 31, 2021 \begin{tabular}{|c|c|c|c|c|c|} \hline & \multicolumn{4}{|c|}{ Quarter } & \multirow[b]{2}{*}{ Year } \\ \hline & 1 & 2 & 3 & 4 & \\ \hline \multicolumn{6}{|l|}{ Cash balance, beginning } \\ \hline Excess (deficiency) of cash available over disbursements & 134,300 & 52,680 & 138,780 & 53,300 & 5,100 \\ \hline Cash balance before reserve requirement & (134,300) & (52,680) & 138,780 & 53,300 & 5,100 \\ \hline Add: Minimum required reserve & 600 & 600 & 600 & 600 & \\ \hline \multicolumn{6}{|l|}{ Balance avallable for repayment (required borrowing) } \\ \hline \multicolumn{6}{|l|}{ Financing: } \\ \hline \multicolumn{6}{|l|}{ Amount borrowed (beginning of period) } \\ \hline \multicolumn{6}{|l|}{ Principal repaid } \\ \hline \multicolumn{6}{|l|}{ Interest paid } \\ \hline \multicolumn{6}{|l|}{ Interest accrued } \\ \hline \multicolumn{6}{|l|}{ Total financing (or repayments for the period) available } \\ \hline \multicolumn{6}{|l|}{ Cash balance after financing - Free cash balance } \\ \hline \multicolumn{6}{|l|}{ Deduct: Minimum balance } \\ \hline \multicolumn{6}{|l|}{ Cash balance, ending } \\ \hline \multicolumn{6}{|l|}{ Interest payable } \\ \hline Interest expense & & & & & \\ \hline \end{tabular}