Total cash receipts Total cash disbursements 1st Quarter $ 300,000 $ 358,000 Beginning cash balance Total cash Total cash available Total cash disbursements Excess (deficiency) of cash available over disbursements Financing: 2nd Quarter $ 420,000 $ 328,000 Borrowings Repayments The company's beginning cash balance for the upcoming fiscal year will be $35,000. 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.) 3rd Quarter $ 350,000 $ 318,000 Answer is complete but not entirely correct. Garden Depot Cash Budget 1st Quarter $ 4th Quarter $ 370,000 $ 338,000 33,000✔ 2nd Quarter 3rd Quarter 35,000 $ 10,000 $ 68,010 $ 300,000✔ 420,000✔ 350,000 335,000 418,010 (358,000)✔ 318,000 (23,000) 100,010 430,000 (328,000) 102,000 33,000 X 4th Quarter 100,010 370,000✔ 470,010 338,000 132,010 $ Year 33333 35,000 1,440,000 1,475,000 1,342,000✔ 133,000✔ 33,000✔ (33,000) 1000)

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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Total cash receipts
Total cash disbursements
Beginning cash balance
Total cash receipts
Total cash available
Total cash disbursements
Excess (deficiency) of cash available over
disbursements
Financing:
1st Quarter
$ 300,000
$ 358,000
Borrowings
Repayments
2nd Quarter
$ 420,000
$ 328,000
The company's beginning cash balance for the upcoming fiscal year will be $35,000. 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.
Interest
Required:
Prepare the company's cash budget for the upcoming fiscal year. (Repayments, interest, and cash deficiencies should be indicated
by a minus sign.)
3rd Quarter
$ 350,000
$ 318,000
X Answer is complete but not entirely correct.
Garden Depot
Cash Budget
1st Quarter
$
2nd Quarter
35,000 $ 10,000
300,000
420,000
335,000
430,000
(358,000)
(328,000)
(23,000)
102,000
4th Quarter
$ 370,000
$ 338,000
33,000
33,000 X
(990)
3rd Quarter
$ 68,010
350,000
418,010
318,000
100,010
4th Quarter
$
Year
100,010 x $ 35,000
370,000
1,440,000
470,010
1,475,000
338,000
1,342,000
132,010
133,000
33,000
(33,000)
(990)
Transcribed Image Text:Total cash receipts Total cash disbursements Beginning cash balance Total cash receipts Total cash available Total cash disbursements Excess (deficiency) of cash available over disbursements Financing: 1st Quarter $ 300,000 $ 358,000 Borrowings Repayments 2nd Quarter $ 420,000 $ 328,000 The company's beginning cash balance for the upcoming fiscal year will be $35,000. 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. Interest Required: Prepare the company's cash budget for the upcoming fiscal year. (Repayments, interest, and cash deficiencies should be indicated by a minus sign.) 3rd Quarter $ 350,000 $ 318,000 X Answer is complete but not entirely correct. Garden Depot Cash Budget 1st Quarter $ 2nd Quarter 35,000 $ 10,000 300,000 420,000 335,000 430,000 (358,000) (328,000) (23,000) 102,000 4th Quarter $ 370,000 $ 338,000 33,000 33,000 X (990) 3rd Quarter $ 68,010 350,000 418,010 318,000 100,010 4th Quarter $ Year 100,010 x $ 35,000 370,000 1,440,000 470,010 1,475,000 338,000 1,342,000 132,010 133,000 33,000 (33,000) (990)
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