Managerial Accounting: E8-7 Forest Outfitters is a retailer that is preparing its budget

Managerial Accounting 
EXERCISE 8-7 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: 
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
Total cash receipts 340,000 670,000 410,000 470,000 
Total cash disbursements 530,000 450,000 430,000 480,000 

The company's beginning cash balance for the upcoming fiscal year will be $50,000. The company requires a minimum cash balance of $30,000 and may borrow any amount needed from a local bank at a quarterly interest rate of 3%. 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.)
Powered by