Garden Depot is a retailer that provided the following budgeted cash flows for next year: Total cash receipts Total cash disbursements 1st Quarter 2nd Quarter $270,000 $420,000 $ 323,000 $ 293,000 3rd Quarter 4th Quarter $300,000 $ 320,000 $ 283,000 $ 303,000 The company's beginning cash balance for next year will be $38,000. 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. Beginning cash balance Total cash receinte. 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: Total cash receipts Total cash disbursements 1st Quarter 2nd Quarter $270,000 $420,000 $ 323,000 $ 293,000 3rd Quarter 4th Quarter $300,000 $ 320,000 $ 283,000 $ 303,000 The company's beginning cash balance for next year will be $38,000. 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. Beginning cash balance Total cash receinte. Garden Depot Cash Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter6: Managing Cash Flow

Section: Chapter Questions

Problem 1EP

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