Southside Sports is preparing its annual cash budget, showing quarterly data, for 2014. A $14,000 cash balance is desired at the end of each quarter. Borrowings and repayments are in $1,000 increments at 6% annual interest. The company borrows at the beginning of a quarter based on the estimated deficiency. Interest is paid only when principal is repaid at the end of a quarter with excess cash. The maximum amount of principal was repaid in the second and fourth quarters. The cash balance on December 31, 2013 is $17,000. Total receipts and disbursements, other than borrowings and principal or interest payments, are estimated at:
Disbursements: (Quarter 1) $110,000 (Quarter 2) $135,000 (Quarter 3) $124,000 (Quarter 4) $140,000
Receipts: (Quarter 1) $102,000 (Quarter 2) $142,000 (Quarter 3) $120,000 (Quarter 4) $155,000
Instructions: Prepare a schedule of estimated borrowings and repayments of principal and interest for the four quarters of 2014.