The company plans to purchase equipment in the second and fourth quarters for $$71,000$ and $$149,000,$ respectivaly. The cash

balanse on January $1$ is $$24,000$ and accounts recaivable total $$152,000.$

Prepare a cash budset for the year. Show receipts, disbursements, the andirg cash balance before borrowing, the amounts borrowed

and repaid, interest payments, and the anding cash balance. $($Round answers to the nearest whole dollar, e$.5\mathrm{.}275.)$

Current Attempt in Progress

The Bridgeport Company is in a seasonal business and prepares quarterly budgets. Its fiscal year runs from January $1$ through

December $31.$ Production occurs only in the first quarter $($January to March$),$ but sales take place throughout the year. The sales

forecast for the coming year shows the following:

There are no cash sales, and the beginning balance of receivables is expected to be collected in the first quarter. Subsequent

collections are two$-$thirds in the quarter when sales take place and one$-$third in the following quarter.

The company makes materials purchases valued at $$398,000$ in the first quarter, but makes no purchases in the last three quarters. It

makes payment when it purchases the materials.

Direct labour of $$350,000$ is incurred and paid only in the first quarter. Factory overhead of $$344,000$ is also incurred and paid in the

first quarter, and is at a standby level of $$100,000$ during the other three quarters. Selling and administrative expenses of $$35,000$ are

paid each quarter throughout the year. Bridgeport has an operating line of credit with its bank at an interest rate of $5\%$ per annum. The

company plans to keep a cash balance of at least $$10,000$ at all times, and it will borrow and repay in multiples of $$5,000.$ It makes all

borrowings at the beginning of a quarter, and makes all payments at the end of a quarter. It pays interest only on the portion of the loan

that it repays in a quarter.

The company plans to purchase equipment in the second and fourth quarters for $$71,000$ and $$148,000,$ respectively. The cash

balance on January $1$ is $$24,000$ and accounts receivable total $$153,000.$

Prepare a cash budget for the year. Show receipts, disbursements, the ending cash balance before borrowing, the amounts borrowed

and repaid, interest payments, and the ending cash balance. $($Round answers to the nearest whole dollar, e$.$g$.5,275.)$

THE BRIDGEPORT COMPANY

Cash Budget

For the Four Quarters Ending December $31$