1st Quarter 2nd Quarter 3rd Quarter 4th Quarter $ 290,000 $440,000 $320,000 $340,000 Total cash receipts Total cash disbursements $337,000 $307,000 $297,000 $317,000 The company's beginning cash balance for the upcoming fiscal year will be $42,000. The compa requires a minimum cash balance of $10,000 and may borrow any amount needed from a local quarterly interest rate of 3%. The company may borrow any amount at the beginning of any qua may repay its loans, or any part of its loans, at the end of any quarter. Interest payments are due principal at the time it is repaid. For simplicity, assume that interest is not compounded. Required:

FINANCIAL ACCOUNTING
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ISBN:9781259964947
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Chapter1: Financial Statements And Business Decisions
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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
$ 290,000 $440,000 $320,000 $340,000
Total cash receipts
Total cash disbursements $337,000 $307,000 $297,000 $317,000
The company's beginning cash balance for the upcoming fiscal year will be $42,000. 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.)
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: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter $ 290,000 $440,000 $320,000 $340,000 Total cash receipts Total cash disbursements $337,000 $307,000 $297,000 $317,000 The company's beginning cash balance for the upcoming fiscal year will be $42,000. 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.)
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