Forest Outfitters is a retailer that is preparing its budget for the upcoming fi

Question

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 $57,900. The company requires a minimum cash balance of $30,200 and may borrow any amount needed from a local bank at a quarterly interest rate of 1.7%. 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.)

Forest Outfitters
Cash Budget

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:

Explanation / Answer

       1st Quarter        2nd Quarter        3rd Quarter        4th Quarter      Year   Cash balance, beginning 57900 30200 239646 238646 57900   Total cash receipts 434000 687000 421000 515000 2057000   Total cash available 491900 717200 660646 753646 2114900   Less total cash disbursements 528000 409000 422000 474000 1833000   Excess (deficiency) of cash available over disbursements -36100 308200 238646 279646 281900   Financing:   Borrowings (at beginning) 66300 0 0 0 66300   Repayments (at ending) 0 66300 0 0 66300   Interest 0 2254 0 0 2254   Total financing 66300 -68554 0 0 -2254   Cash balance, ending 30200 239646 238646 279646 279646

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