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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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help me with this with accurate solution pls
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
Transcribed Image Text: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:
Total cash receipts
Total cash disbursements
1st Quarter
$ 180,000
$ 260,000
2nd Quarter
$ 330,000
$ 230,000
Beginning cash balance
Total cash receipts
Total cash available
Total cash disbursements
Excess (deficiency) of cash available over disbursements
3rd Quarter
$ 210,000
$ 220.000
The company's beginning cash balance for the upcoming fiscal year will be $20,000. 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
Required:
Prepare the company's cash budget for the upcoming fiscal year. (Repayments, interest, and cash deficiencies should be indicated
by a minus sign.)
Garden Depot
Cash Budget
1st Quarter
$
4th Quarter
$ 230,000
$ 240,000
3rd Quarter 4th Quarter
35,800 $
210,000
245,800
220,000
25.800
2nd Quarter
20,000 $ 10,000 $
330,000
180,000
200.000
340,000
60.000
230,000
140.000
110,000
25,800 $
230,000
255,800
240.000
15,800
Year
20.000
950,000
970,000
950,000
20,000
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