Question attached in image. Thanks. Forest Outfitters is a retailer that is prep

Question

Question attached in image. Thanks.

Forest Outfitters is a retailer that is preparing its budget for the upcoming fiscal year. Management has prepared the following summary of its budgeted cash flows: The company's beginning cash balance for the upcoming fiscal year will be $64,500. The company requires a minimum cash balance of $30,900 and may borrow any amount needed from a local bank at a quarterly interest rate of 1.5%. The company may borrow any amount at the beginning of any quarter and may repay its loans, or any part of its loans, at the end of any quarter. Interest payments are due on any principal at the time it is repaid. Complete the company's cash budget for the upcoming fiscal year. (Input all amounts as positive values except cash deficiency, repayments, and interest, which should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations. Round your answers to the nearest dollar amount. Omit the "$" sign in your response.)

Explanation / Answer

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Please find the answer as follows:

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Forest Outfitters Cash Budget
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Cash Balance Beginning 64500 30900 200518 176518 64500 Total Cash Receipts 388000 678000 416000 479000 1961000 Total Cash Available 452500 708900 616518 655518 2433436 Less Total Cash Disbursements 521000 406000 440000 479000 1846000 Excess (Deficiency) of Cash Available
over Disbursements -68500 302900 176518 176518 587436





Financing




Borrowings (At Begnning) 99400 0 0 0 99400 Repayments (At Ending) 0 -99400 0 0 -99400 Interest 0 -2982 0 0 -2982 Total Financing 99400 -102382 0 0 -102382 Cash Balance Ending 30900 200518 176518 176518 176518

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