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Q1

Q2

Q3

Q4

Begining Cash Balance

Add receipts

Account receivable

CR sales 1st

CR sales 2nd

CR sales 3rd

CR sales 4th

Total cash receipts

Total cash available

Less disbursements

Materials purchases

DL

Factory OH

S & A Expenses

Purchase of equiptment

Total cash disbursement

Excess - Deficiency

Financing

Borrowing

Less repayment

less interest

total financing

ending cash balance

The Bridgeport Company is in a seasonal business and prepares quarterly budgets. Its fiscal year runs from January 1 through December 31. Production occurs only in the first quarter (January to March), but sales take place throughout the year. The sales forecast for the coming year shows the following: There are no cash sales, and the beginning balance of receivables is expected to be collected in the first quarter. Subsequent collections are two-thirds in the quarter when sales take place and one-third in the following quarter. The company makes materials purchases valued at $398,000 in the first quarter, but makes no purchases in the last three quarters. It makes payment when it purchases the materials. Direct labour of $350,000 is incurred and paid only in the first quarter. Factory overhead of $344,000 is also incurred and paid in the first quarter, and is at a standby level of $100,000 during the other three quarters. Selling and administrative expenses of $35,000 are paid each quarter throughout the year. Bridgeport has an operating line of credit with its bank at an interest rate of 5% per annum. The company plans to keep a cash balance of at least $10,000 at all times, and it will borrow and repay in multiples of $5,000. It makes all borrowings at the beginning of a quarter, and makes all payments at the end of a quarter. It pays interest only on the portion of the loan that it repays in a quarter. The company plans to purchase equipment in the second and fourth quarters for $71,000 and $148,000, respectively. The cash balance on January 1 is $24,000 and accounts receivable total $153,000. Prepare a cash budget for the year. Show receipts, disbursements, the ending cash balance before borrowing, the amounts borrowed and repaid, interest payments, and the ending cash balance. (Round answers to the nearest whole dollar, e.g. 5,275.)

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