Problem
Ace Company began 2012 with $42,000 of cash. During 2012, Ace expected to collect $200,000 from customers during the first quarter, $500,000 in the second quarter, $500,000 in the third quarter, and $500,000 in the fourth quarter. Expected cash expenditures during 2102 were $200,000, $400,000, $400,000, and $400,000 in the first, second, third, and fourth quarter, respectively. Ace%u2019s banker requires Ace to maintain a $30,000 balance at the end of each quarter, and allows ace to borrow in $10,000 increments at the beginning of each quarter. Interest is charged at a rate of 12% per year and the loan may be repaid with interest at the end of any quarter. Prepare a 2012 cash budget for Ace.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.