ACC 303 Homework 212418 Do. P. 1,23 .Forest Outfitters is a retailer that is pre

Question

ACC 303 Homework 212418 Do. P. 1,23 .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: Third Fourth Second First $340,000 410,000 470,000 670,000 Total cash receipts Total cash disbursements S 530,000 450,000 430,000 $ 480,000 The company's beginning cash balance for the upcoming fiscal year will be $45,000. The company requires a minimum cash balance of $40,000 and may borrow any amount needed from a local bank at a quarterly interest rate of 4%. 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 Prepare the company's cash budget for the upcoming fiscal year 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Cash balance, beginning Total cash receipts Total cash available Less total cash disbursements val Financing: Borrowings (at beginning)* Repayments (at ending) Interest Total financing Cash balance, ending

Explanation / Answer

Answer:-

Forest Outfitters Cash Budget Particulars 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr $ $ $ $ Cash balance,beginning 45000 40000 71300 51300 Total cash receipts 340000 670000 410000 470000 Total cash available 385000 710000 481300 521300 Less:- Total cash disbursements 530000 450000 430000 480000 Excess (deficiency) -145000 260000 51300 41300 Financing:- Borrowings (at beginning) 185000 Repayments (at ending) -185000 Interest -3700 Total financing 185000 -188700 Cash balance,ending 40000 71300 51300 41300

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