27 is a retailer that is preparing its budget for the upcomi

27. is a retailer that is preparing its budget for the upcoming fiscal year. Management has Forest Outfitters prepared the following summary of its budgeted cash flows Total cash receipts Total cash disbursements $ 340,000 $670,000$410,000$ 470,000 $ 530,000$ 450,000 $430,000 $480,000 The company\'s beginning cash balance for the upcoming fiscal year will be $50,000. The company requires a minimum cash balance of $30,000 and may borrow any amount needed from a local bank at a quarterly interest rate of 3%. The company may borrow any amount at the beginning of any quarter and may repay its loans, or any part of its loans, at the end of any quarter. Interest payments are due on any principal at the time it is repaid. Required: Complete the company\'s cash budget for the upcoming fiscal year. (Cash deficiency, repayments, and interest, should be indicated by a minus sign.) Forest Outfitters Cash Budget 1st 2nd 3rd 4th Quarter Quarter Quarter Quarter Year Cash balance, beginning Total cash receipts Total cash available Less total cash disbursements Excess of cash available over disbursements Financing Borrowings Repayments Interest Total financing Cash balance, ending

Solution

Cash budget :

	1st quarter	2nd quarter	3rd quarter	4th quarter	Year
Cash balance, beginning	50000	30000	74900	54900	50000
Total cash receipts	340000	670000	410000	470000	1890000
Total cash available	390000	700000	484900	524900	1940000
Less; Total cash disbursement	-530000	-450000	-430000	-480000	-1890000
Excess of cash available over disbursement	-140000	250000	54900	44900	50000
Financing
Borrowings	170000				170000
Repayments		-170000			-170000
Interest		-5100			-5100
Total financing	170000	-175100	0	0	-5100
Cash balance, ending	30000	74900	54900	44900	44900