Evaluate the cash balance at the end of each quarter

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Reference no: EM1382202

The company wants to have a minimum of $50,000 cash balance at the end of each quarter.

Assume cash is borrowed at the beginning of a quarter and repaid at the end of a quarter. Simple Interest is based on 1% each month on outstanding borrowings. Beginning cash balance is $60,000. Cash borrowed is assumed to happen on the first day of a quarter and any payments are assumed to occur on the last day of a quarter. Interest is only paid on cash repayments.

	Quarter 1	Quarter 2	Quarter 3	Quarter 4	Total Year
Cash Balance - Beginning	60,000
Total Cash Available	450,000	563,000	858,000	937,000	2,809,600
Total Cash Disbursements	460,000	563,000	739,000	760,000	2,522,000
Cash Flow - Excess (deficiency)
Financing:
Borrowings - Line of credit
Repayments - Line of Credit
Interest Paid - Line of Credit
Total Financing

Cash Balance - Ending

Monthly Interest Rate	1.00%

Reference no: EM1382202

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