14 value 110 points Forest Outfitters is a retailer that is preparing its budget

Question

14 value 110 points 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: Total cash receipts Total cash disbursements 1st Quarteruli2nd Quarter Hand auartern 4th Quarter: E $ 446,000 $ 529,000 $ 419,000 $ 430,000$ 470,000 S 502.000 $ 677.000 $ 400,000 The company's beginning cash balance for the upcoming fiscal year will be $89,200. The company requires a minimum cash balance of $32,000 and may borrow any amount needed from a local bank at a quarterly interest rate of 2.9%. 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 ist 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

Explanation / Answer

1stqtr 2nd qtr 3rd qtr 4 th qtr Year Cash balance,beginnning 69,200 32,000 260,544 249,544 69,200 total cash receipts 446,000 677,000 419,000 502,000 2,044,000 total cash avaialable 515,200 709000 679544 751544 2,113,200 less:total cash disbursements 529,000 400,000 430,000 470,000 1,829,000 Excess(Deficiency )of cash available for disbursements -13,800 309,000 249,544 281,544 284,200 Financing: Borrowings(at beginning) 45,800 0 0 0 45,800 Repayments (at ending) 0 -45,800 0 0 -45,800 Interest 0 -2656 0 0 -2,656 total financing 45,800 -48456 0 0 -2,656 Cash balance,ending 32,000 260,544 249,544 281,544 281,544 interest = 45800*2.9%*2 2656.4 or 2656

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