Westex Products is a wholesale distributor of Industrial cleaning products. The company treasurer has assembled the following information to assist in preparing a detailed cash budget to support the company's loan application for short-term financing with a local bank a. Budgeted sales and merchandise purchases for the year 2020, as well as actual sales and purchases for the last quarter of 2019, are as follows: Sales Merchandise Purchases 2019: $ 400,000 3252,000 Fourth quarter actual 2020: First quarter estimated Second quarter estimated Third quarter estimated Fourth quarter estimated 600,000 300,000 1,000,000 400,000 372,00 496,000 610,000 252,000 b. The company normally collects 65% of a quarter's sales before the quarter ends and another 33% in the following quarter. The remainder are uncollectible. This pattern of collections is now being experienced in the 2019 fourth-quarter actual data c. 80% of a quarter's merchandise purchases are paid for within the quarter. The remainder are paid in the following quarter d. Operating expenses for the year 2020 are budgeted quarterly at $100.000 plus 15% of sales of the fixed amount, $40,000 each quarter is depreciation e The company will pay $20,000 in dividends each quarter. 1. Equipment purchases of $150,800 will be made in the second quarter, and purchases of $96,000 will be made in the third quarter These purchases will be for cash, The cash account contained $20,000 at the end of 2019. The treasurer feels that this represents a minimum balance that must be maintained n Any borrowing will take place at the beginning of a quarter and any repayments will be made at the end of a quarter at an annual interest rate of 10% Interest is paid only when the principal is repaid. All borrowings and all repayments of the principal must be in round $1,000 amounts Interest payments can be in any amount. Compute interest on whole months, e.g. 112.2/21 3. Prepare a cash budget, by quarter and In total, for the year 2020. In your budget, clearly show the quarter(s) in which borrowing will be necessary and the quarter(s) in which repayments can be made, as requested by the company's bank. (Roundup "Borrowing" and "Repayments" answers to the nearest whole dollar amount. Any "Repayments", "Interest" and "Deficiency of cash" should be indicated by a minus sign.) WESTEX PRODUCTS Cash Budget for year 2020 First Second Third Fourth Year 320,000 $ 24.000 $ 20,000 $ 20,800 $ 20,000 522.000 718,000 914,000 590,000 2,744.000 542.000 742,000 934.000 810,800 2.764.000 Cash balance beginning Add: Collections from sales Total cash available Deduct Disbursements: Merchandise purchases Operating expenses Dividends Equipment 348,000 150.000 20.000 471,200 180,000 20.000 150.800 587,200 210,000 20.000 00,000 323.000 120,000 20,000 1.730,000 600.000 80.000 240,800 518,000 24,000 822,000 (80,000) 913,200 20.800 453,000 147,200 2710,800 47.200 Total disbursements Excess (deficiency) of receipts over disbursements Financing Borrowings Repayments Interest Depreciation expense Total financing Cash balance, ending 1.000.000 1,000,000 (1.000.000) (1,000,000) (3.500) (3.500) (40,000) 000.000 (1003.500) (3.500) 524.000 520.000 $ 20.800543.700343.700 4. Consider the cash balance at the end of the fourth quarter as calculated in Requirement (3) Recalculate the ending balance if repayment of principal can be in round $100 amounts (Do not round Intermediate calculations. Round your answer to 2 decimal places.) Erding cash balance