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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 $ 434,000     $ 687,000     $ 421,000     $ 515,000    
  Total cash disbursements $ 528,000     $ 409,000     $ 422,000     $ 474,000    

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.

Required:

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


       1st Quarter        2nd Quarter        3rd Quarter        4th Quarter      Year
  Cash balance, beginning $ $ $ $ $   
  Total cash receipts   






  Total cash available   
  Less total cash disbursements   






  Excess (deficiency) of cash available over disbursements   






  Financing:




  Borrowings (at beginning)   
  Repayments (at ending)   
  Interest   






  Total financing   






  Cash balance, ending $ $ $ $ $   












Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M9798440

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