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人 es Total cash receipts Total cash disbursements 1st Quarter $ 320,000 $ 372,000 2nd Quarter $ 440,000 $ 342,000 3rd Quarter $ 370,000 4th Quarter $ 390,000 $ 332,000 $ 352,000 The company's beginning cash balance for next year will be $27,000. 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 receipts Total cash available Total cash disbursements Excess (deficiency) of cash available over disbursements Financing: Borrowings Repayments Interest Total financing Ending cash balance L Garden Depot Cash Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year $ 27,000 $ 10,000 $ 10,000 $ 10,000 320,000 440,000 370,000 390,000 347,000 450,000 380,000 400,000 372,000 342,000 332,000 352,000 (25,000) 108,000 48,000 48,000 1,050 1,050 0 0 35,000 0 0 0 35,000 0 0 36,050 36,050 0 0 $ 11,050 $ 144,050 $ 48,000 $ 48,000

人 es Total cash receipts Total cash disbursements 1st Quarter $ 320,000 $ 372,000 2nd Quarter $ 440,000 $ 342,000 3rd Quarter $ 370,000 4th Quarter $ 390,000 $ 332,000 $ 352,000 The company's beginning cash balance for next year will be $27,000. 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 receipts Total cash available Total cash disbursements Excess (deficiency) of cash available over disbursements Financing: Borrowings Repayments Interest Total financing Ending cash balance L Garden Depot Cash Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year $ 27,000 $ 10,000 $ 10,000 $ 10,000 320,000 440,000 370,000 390,000 347,000 450,000 380,000 400,000 372,000 342,000 332,000 352,000 (25,000) 108,000 48,000 48,000 1,050 1,050 0 0 35,000 0 0 0 35,000 0 0 36,050 36,050 0 0 $ 11,050 $ 144,050 $ 48,000 $ 48,000

FINANCIAL ACCOUNTING
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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人 es Total cash receipts Total cash disbursements 1st Quarter $ 320,000 $ 372,000 2nd Quarter $ 440,000 $ 342,000 3rd Quarter $ 370,000 4th Quarter $ 390,000 $ 332,000 $ 352,000 The company's beginning cash balance for next year will be $27,000. 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 receipts Total cash available Total cash disbursements Excess (deficiency) of cash available over disbursements Financing: Borrowings Repayments Interest Total financing Ending cash balance L Garden Depot Cash Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year $ 27,000 $ 10,000 $ 10,000 $ 10,000 320,000 440,000 370,000 390,000 347,000 450,000 380,000 400,000 372,000 342,000 332,000 352,000 (25,000) 108,000 48,000 48,000 1,050 1,050 0 0 35,000 0 0 0 35,000 0 0 36,050 36,050 0 0 $ 11,050 $ 144,050 $ 48,000 $ 48,000
Transcribed Image Text:人 es Total cash receipts Total cash disbursements 1st Quarter $ 320,000 $ 372,000 2nd Quarter $ 440,000 $ 342,000 3rd Quarter $ 370,000 4th Quarter $ 390,000 $ 332,000 $ 352,000 The company's beginning cash balance for next year will be $27,000. 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 receipts Total cash available Total cash disbursements Excess (deficiency) of cash available over disbursements Financing: Borrowings Repayments Interest Total financing Ending cash balance L Garden Depot Cash Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year $ 27,000 $ 10,000 $ 10,000 $ 10,000 320,000 440,000 370,000 390,000 347,000 450,000 380,000 400,000 372,000 342,000 332,000 352,000 (25,000) 108,000 48,000 48,000 1,050 1,050 0 0 35,000 0 0 0 35,000 0 0 36,050 36,050 0 0 $ 11,050 $ 144,050 $ 48,000 $ 48,000
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