Forest Outfitters is a retailer that is preparing its budget for the upcoming fi
ID: 2503535 • Letter: F
Question
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:
The company's beginning cash balance for the upcoming fiscal year will be $57,900. The company requires a minimum cash balance of $30,200 and may borrow any amount needed from a local bank at a quarterly interest rate of 1.7%. The company may borrow any amount at the beginning of any quarter and may repay its loans, or any part of its loans, at the end of any quarter. Interest payments are due on any principal at the time it is repaid.
Complete the company's cash budget for the upcoming fiscal year. (Input all amounts as positive values except cash deficiency, repayments, and interest, which should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations. Round your answers to the nearest dollar amount. Omit the "$" sign in your response.)
Forest Outfitters
Cash Budget
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:
Explanation / Answer
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Cash balance, beginning 57900 30200 239646 238646 57900 Total cash receipts 434000 687000 421000 515000 2057000 Total cash available 491900 717200 660646 753646 2114900 Less total cash disbursements 528000 409000 422000 474000 1833000 Excess (deficiency) of cash available over disbursements -36100 308200 238646 279646 281900 Financing: Borrowings (at beginning) 66300 0 0 0 66300 Repayments (at ending) 0 66300 0 0 66300 Interest 0 2254 0 0 2254 Total financing 66300 -68554 0 0 -2254 Cash balance, ending 30200 239646 238646 279646 279646