Garden Depot is a retailer that provided the following budgeted cash flows for next year:      1st Quarter    2nd Quarter    3rd Quarter    4th QuarterTotal cash receipts    $ 290,000    $ 410,000    $ 340,000    $ 360,000Total cash disbursements    $ 351,000    $ 321,000    $ 311,000    $ 331,000The company’s beginning cash balance for next year will be $47,000. The company requires a minimum cash balance of $10,000 and may borrow money at the beginning of any quarter and may repay any part of its loans at the end of any quarter. Interest payments, based on a quarterly interest rate of 3%, are due on any principal at the time it is repaid. For simplicity, assume interest is not compounded. Required:Prepare the company’s cash budget for next year.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Garden Depot is a retailer that provided the following budgeted cash flows for next year:

     1st Quarter    2nd Quarter    3rd Quarter    4th Quarter
Total cash receipts    $ 290,000    $ 410,000    $ 340,000    $ 360,000
Total cash disbursements    $ 351,000    $ 321,000    $ 311,000    $ 331,000
The company’s beginning cash balance for next year will be $47,000. The company requires a minimum cash balance of $10,000 and may borrow money at the beginning of any quarter and may repay any part of its loans at the end of any quarter. Interest payments, based on a quarterly interest rate of 3%, are due on any principal at the time it is repaid. For simplicity, assume interest is not compounded.

Required:
Prepare the company’s cash budget for next year.

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