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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: Total cash receipts Total cash disbursements '1st Quarter $ 180.000 $260,000 2nd Quarter $ 330.000 $ 230,000 3rd Quarter $ 210.000 $ 220.000 4th Quarter $ 230,000 $ 240,000 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 deficiencles should be Indicated by a minus sign.) Garden Depot Cash Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Beginning cash balance Total cash receipts 20.000 5 10.000 35,800 S 25.800 20.000 180.000 210.000 230,000 950,000 Total cash available 200,000 10.000 245.800 255,800 970,000 Total cash disbursements 260.000 230,000 220.000 240.000 950.000 Excess (deficiency) of cash available over disbursements (60.000) (220,000) 25,800 15.800 Financing Borrowings 70,000 70,000 Repayments Interest Total financing Ending cash balance 0 0 0 70.000 0 རི། 10,000 $ (220,000) $ 25.800 15,800 $ 15.800

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 3rd Quarter $ 210.000 $ 220.000 4th Quarter $ 230,000 $ 240,000 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 deficiencles should be Indicated by a minus sign.) Garden Depot Cash Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Beginning cash balance Total cash receipts 20.000 5 10.000 35,800 S 25.800 20.000 180.000 210.000 230,000 950,000 Total cash available 200,000 10.000 245.800 255,800 970,000 Total cash disbursements 260.000 230,000 220.000 240.000 950.000 Excess (deficiency) of cash available over disbursements (60.000) (220,000) 25,800 15.800 Financing Borrowings 70,000 70,000 Repayments Interest Total financing Ending cash balance 0 0 0 70.000 0 རི། 10,000 $ (220,000) $ 25.800 15,800 $ 15.800

EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter4: Financial Planning And Forecasting
Section: Chapter Questions
Problem 4P
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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: Total cash receipts Total cash disbursements '1st Quarter $ 180.000 $260,000 2nd Quarter $ 330.000 $ 230,000 3rd Quarter $ 210.000 $ 220.000 4th Quarter $ 230,000 $ 240,000 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 deficiencles should be Indicated by a minus sign.) Garden Depot Cash Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Beginning cash balance Total cash receipts 20.000 5 10.000 35,800 S 25.800 20.000 180.000 210.000 230,000 950,000 Total cash available 200,000 10.000 245.800 255,800 970,000 Total cash disbursements 260.000 230,000 220.000 240.000 950.000 Excess (deficiency) of cash available over disbursements (60.000) (220,000) 25,800 15.800 Financing Borrowings 70,000 70,000 Repayments Interest Total financing Ending cash balance 0 0 0 70.000 0 རི། 10,000 $ (220,000) $ 25.800 15,800 $ 15.800
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 3rd Quarter $ 210.000 $ 220.000 4th Quarter $ 230,000 $ 240,000 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 deficiencles should be Indicated by a minus sign.) Garden Depot Cash Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Beginning cash balance Total cash receipts 20.000 5 10.000 35,800 S 25.800 20.000 180.000 210.000 230,000 950,000 Total cash available 200,000 10.000 245.800 255,800 970,000 Total cash disbursements 260.000 230,000 220.000 240.000 950.000 Excess (deficiency) of cash available over disbursements (60.000) (220,000) 25,800 15.800 Financing Borrowings 70,000 70,000 Repayments Interest Total financing Ending cash balance 0 0 0 70.000 0 རི། 10,000 $ (220,000) $ 25.800 15,800 $ 15.800
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