Garden Depot is a retailer that provided the following budgeted cash flows for next year: 3rd Quarter $ 220,000 $ 227,000 Total cash receipts Total cash disbursements 1st Quarter $ 190,000 $ 267,000 2nd Quarter $ 340,000 $ 237,000 The company's beginning cash balance for next year will be $22,000. 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. Note: Repayments, interest, and cash deficiencies should be indicated by a minus sign. 4th Quarter $ 240,000 $ 247,000 Garden Depot Cash Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year

Garden Depot is a retailer that provided the following budgeted cash flows for next year: 3rd Quarter $ 220,000 $ 227,000 Total cash receipts Total cash disbursements 1st Quarter $ 190,000 $ 267,000 2nd Quarter $ 340,000 $ 237,000 The company's beginning cash balance for next year will be $22,000. 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. Note: Repayments, interest, and cash deficiencies should be indicated by a minus sign. 4th Quarter $ 240,000 $ 247,000 Garden Depot Cash Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Garden Depot is a retailer that is preparing its budget for the upcoming fiscal year. Management has prepared the following summary of its budgeted cash flows: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total cash receipts $ 320,000 $ 440,000 $ 370,000 $ 390,000 Total cash disbursements $ 372,000 $ 342,000 $ 332,000 $ 352,000 The company’s beginning cash balance for the upcoming fiscal year will be $27,000. The company requires a minimum cash balance of $10,000 and may borrow any amount needed from a local bank at a quarterly interest rate of 3%. The company may borrow any amount at the beginning of any quarter and may repay its loans, or any part of its loans, at the end of any quarter. Interest payments are due on any principal at the time it is repaid. For simplicity, assume that interest is not compounded. Prepare the company’s cash budget for the upcoming fiscal year.
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