The Shamrock 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:

First quarter		$477,000		Third quarter		$477,000
Second quarter		291,000		Fourth quarter		477,000

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 $396,000 in the first quarter, but makes no purchases in the last three quarters. It makes payment when it purchases the materials. Direct labour of $352,000 is incurred and paid only in the first quarter. Factory overhead of $341,000 is also incurred and paid in the first quarter, and is at a standby level of $101,000 during the other three quarters. Selling and administrative expenses of $35,000 are paid each quarter throughout the year. Shamrock 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 $70,000 and $150,000, respectively. The cash balance on January 1 is $25,000 and accounts receivable total $151,000. 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 SHAMROCK COMPANY Cash Budget For the Four Quarters Ending December 31
		Quarter
		1		2		3		4
select an opening cash budget item Credit sales-3rdInterest expenseMaterial purchasesSelling and administrative expensesBorrowingFinancingPurchase of equipmentTotal cash availableTotal cash receiptsExcess (Deficiency) of cash receipts over cash disbursementsEnding cash balanceDonation receivedTotal financingCredit sales-1stCredit sales-4thBeginning cash balanceTotal cash disbursementsFactory overheadCredit sales-2ndDisbursementsRepaymentAccounts receivableDirect labourReceipts		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount
select between addition and deduction AddLess: select an opening name for section one DisbursementsTotal cash availableFinancingAccounts receivableExcess (Deficiency) of cash receipts over cash disbursementsTotal financingPurchase of equipmentCredit sales-1stCredit sales-2ndReceiptsBeginning cash balanceEnding cash balanceTotal cash receiptsCredit sales-4thCredit sales-3rdDirect labourTotal cash disbursementsSelling and administrative expensesMaterial purchasesBorrowingDonation receivedRepaymentInterest expenseFactory overhead
select a cash budget item Accounts receivableReceiptsCredit sales-2ndDonation receivedFactory overheadDisbursementsDirect labourInterest expenseCredit sales-1stFinancingTotal cash receiptsTotal cash availableBeginning cash balanceTotal financingPurchase of equipmentExcess (Deficiency) of cash receipts over cash disbursementsMaterial purchasesSelling and administrative expensesRepaymentBorrowingTotal cash disbursementsCredit sales-4thEnding cash balanceCredit sales-3rd		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount
select a cash budget item Total cash receiptsTotal financingExcess (Deficiency) of cash receipts over cash disbursementsInterest expensePurchase of equipmentEnding cash balanceDisbursementsTotal cash disbursementsAccounts receivableDonation receivedRepaymentCredit sales-2ndDirect labourMaterial purchasesCredit sales-1stTotal cash availableCredit sales-4thFinancingFactory overheadSelling and administrative expensesCredit sales-3rdReceiptsBorrowingBeginning cash balance		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount
select a cash budget item Ending cash balanceRepaymentCredit sales-2ndTotal cash availableTotal cash receiptsBeginning cash balanceDirect labourInterest expenseAccounts receivableTotal financingExcess (Deficiency) of cash receipts over cash disbursementsCredit sales-1stDisbursementsDonation receivedCredit sales-4thCredit sales-3rdBorrowingPurchase of equipmentFactory overheadSelling and administrative expensesMaterial purchasesReceiptsTotal cash disbursementsFinancing		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount
select a cash budget item Credit sales-3rdDirect labourCredit sales-4thFactory overheadRepaymentReceiptsAccounts receivableDisbursementsInterest expenseEnding cash balanceFinancingTotal cash availableBeginning cash balanceSelling and administrative expensesExcess (Deficiency) of cash receipts over cash disbursementsTotal cash receiptsTotal cash disbursementsCredit sales-2ndBorrowingCredit sales-1stMaterial purchasesDonation receivedPurchase of equipmentTotal financing		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount
select a cash budget item Credit sales-4thDisbursementsPurchase of equipmentRepaymentFactory overheadDonation receivedInterest expenseBeginning cash balanceBorrowingExcess (Deficiency) of cash receipts over cash disbursementsMaterial purchasesTotal financingSelling and administrative expensesTotal cash disbursementsTotal cash availableDirect labourTotal cash receiptsFinancingCredit sales-3rdCredit sales-1stCredit sales-2ndEnding cash balanceAccounts receivableReceipts		enter a dollar amount		enter a dollar amount