SmarTech manufactures and launches space stations. Use the following information to complete the cash budget in...

 

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SmarTech manufactures and launches space stations. Use the following information to complete the cash budget in the table for the year ending December 31, 2023. ● SmarTech's CEO insists that SmarTech maintain a'minimum monthly cash balance of $15 million ● ● In the event of a cash deficiency, you are instructed to borrow exactly as much as is needed to return SmarTech to the minimum cash balance required. Short-term loans carry an interest rate of 12% per year, calculated from the beginning of the quarter in which the loan is infitated and through the end of the quarter in which the loan is repaid. In the second quarter SmarTech makes a major investment in machinery amounting to $85 million. On January 1, 2021 SmarTech raised $100 million through the issue of a five-year 12% bond. Interest on this long-term debt is payable quarterly. SmarTech Particulars Cash Budget For the Year Ended December 31, 2023 (Amount in $000) Q-1 Q-2 Cash Balance, Beginning Add: Collection from Customers Total Cash Available Cash Disbursements: Direct Materials Payroll Other Costs Interest Costs (bond) Machinery Purchase Income Taxes Total Disbursements Cash Excess (Deficiency) Financing: Borrowing (at beginning) Repayment (at end) Interest (at 12% per annum) Total Effects of Financing Cash Balance, Ending 15,000 385,000 175,000 ? 50,000 ? 0 15,000 368,000 ? oooo9 32,000 ? ? 125,000 110,000 45,000 ? ? 14,000 ? (50,000) ? 0 0 ? ? Q-3 ? 95,000 40,000 ? 0 M ? 12,000 260,000 ? 0 0 0 -0 JAX Q-4 ? 365,000 155,000 118,000 49,000 ? 0 ? 345,000 ? 0 ? ? (54,500) 15.500 Year Total ? 1,360,000 ? 448,000 ? ? 85,000 61,000 1,355,000 5,000 ? (50,000) (4,500) (4,500) SmarTech manufactures and launches space stations. Use the following information to complete the cash budget in the table for the year ending December 31, 2023. ● SmarTech's CEO insists that SmarTech maintain a'minimum monthly cash balance of $15 million ● ● In the event of a cash deficiency, you are instructed to borrow exactly as much as is needed to return SmarTech to the minimum cash balance required. Short-term loans carry an interest rate of 12% per year, calculated from the beginning of the quarter in which the loan is infitated and through the end of the quarter in which the loan is repaid. In the second quarter SmarTech makes a major investment in machinery amounting to $85 million. On January 1, 2021 SmarTech raised $100 million through the issue of a five-year 12% bond. Interest on this long-term debt is payable quarterly. SmarTech Particulars Cash Budget For the Year Ended December 31, 2023 (Amount in $000) Q-1 Q-2 Cash Balance, Beginning Add: Collection from Customers Total Cash Available Cash Disbursements: Direct Materials Payroll Other Costs Interest Costs (bond) Machinery Purchase Income Taxes Total Disbursements Cash Excess (Deficiency) Financing: Borrowing (at beginning) Repayment (at end) Interest (at 12% per annum) Total Effects of Financing Cash Balance, Ending 15,000 385,000 175,000 ? 50,000 ? 0 15,000 368,000 ? oooo9 32,000 ? ? 125,000 110,000 45,000 ? ? 14,000 ? (50,000) ? 0 0 ? ? Q-3 ? 95,000 40,000 ? 0 M ? 12,000 260,000 ? 0 0 0 -0 JAX Q-4 ? 365,000 155,000 118,000 49,000 ? 0 ? 345,000 ? 0 ? ? (54,500) 15.500 Year Total ? 1,360,000 ? 448,000 ? ? 85,000 61,000 1,355,000 5,000 ? (50,000) (4,500) (4,500)