Total cash receipts Total cash disbursements 1st Quarter $ 280,000 2nd Quarter 3rd Quarter 4th Quarter...

 

Transcribed Image Text:

Total cash receipts Total cash disbursements 1st Quarter $ 280,000 2nd Quarter 3rd Quarter 4th Quarter $ 430,000 $ 330,000 $ 300,000 $ 310,000 $ 290,000 $ 330,000 $ 310,000 The company's beginning cash balance for next year will be $40,000. The company requires a minimum cash balance of $10,000 and may borrow money at the beginning of any quarter and may repay any part of its loans at the end of any quarter. Interest payments, based on a quarterly interest rate of 3%, are due on any principal at the time it is repaid. For simplicity, assume interest is not compounded. Required: Prepare the company's cash budget for next year. Note: Repayments, interest, and cash deficiencies should be indicated by a minus sign. Total cash receipts Total cash disbursements 1st Quarter $ 280,000 2nd Quarter 3rd Quarter 4th Quarter $ 430,000 $ 330,000 $ 300,000 $ 310,000 $ 290,000 $ 330,000 $ 310,000 The company's beginning cash balance for next year will be $40,000. The company requires a minimum cash balance of $10,000 and may borrow money at the beginning of any quarter and may repay any part of its loans at the end of any quarter. Interest payments, based on a quarterly interest rate of 3%, are due on any principal at the time it is repaid. For simplicity, assume interest is not compounded. Required: Prepare the company's cash budget for next year. Note: Repayments, interest, and cash deficiencies should be indicated by a minus sign.