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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 2nd Quarter $ 250.000 $ 309,000 $ 400,000 $ 279,000 3rd Quarter $ 280,000 $ 269,900 4th Quarter $ 300,000 $ 289,000 The company's beginning cash balance for the upcoming fiscal year will be $34,000. 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.) × Answer is not complete. Garden Depot Cash Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Beginning cash balance Total cash receipts S 34,000 $ 10,000 S 250.000 400,000 96.000 S 280,000 107.000 x 300,000 ( Total cash available 284.000 410,000 376,000 407.000 1.230.000 1,264.000 Total cash disbursements 309,000 279.000 289,000 289,000 - 1,146,000 Excess (deficiency) of cash available over disbursements (25,000) 131,000 107,000 118,000 Financing: Borrowings 35,000 0 Repayments Interest 0 (35,000) 0 0 0 Sum Total financing 35,000 (35,000) 0 Ending cash balance IS 10,000 96,000 107,000 S 0 118,000

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 2nd Quarter $ 250.000 $ 309,000 $ 400,000 $ 279,000 3rd Quarter $ 280,000 $ 269,900 4th Quarter $ 300,000 $ 289,000 The company's beginning cash balance for the upcoming fiscal year will be $34,000. 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.) × Answer is not complete. Garden Depot Cash Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Beginning cash balance Total cash receipts S 34,000 $ 10,000 S 250.000 400,000 96.000 S 280,000 107.000 x 300,000 ( Total cash available 284.000 410,000 376,000 407.000 1.230.000 1,264.000 Total cash disbursements 309,000 279.000 289,000 289,000 - 1,146,000 Excess (deficiency) of cash available over disbursements (25,000) 131,000 107,000 118,000 Financing: Borrowings 35,000 0 Repayments Interest 0 (35,000) 0 0 0 Sum Total financing 35,000 (35,000) 0 Ending cash balance IS 10,000 96,000 107,000 S 0 118,000

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 2nd Quarter $ 250.000 $ 309,000 $ 400,000 $ 279,000 3rd Quarter $ 280,000 $ 269,900 4th Quarter $ 300,000 $ 289,000 The company's beginning cash balance for the upcoming fiscal year will be $34,000. 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.) × Answer is not complete. Garden Depot Cash Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Beginning cash balance Total cash receipts S 34,000 $ 10,000 S 250.000 400,000 96.000 S 280,000 107.000 x 300,000 ( Total cash available 284.000 410,000 376,000 407.000 1.230.000 1,264.000 Total cash disbursements 309,000 279.000 289,000 289,000 - 1,146,000 Excess (deficiency) of cash available over disbursements (25,000) 131,000 107,000 118,000 Financing: Borrowings 35,000 0 Repayments Interest 0 (35,000) 0 0 0 Sum Total financing 35,000 (35,000) 0 Ending cash balance IS 10,000 96,000 107,000 S 0 118,000
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 2nd Quarter $ 250.000 $ 309,000 $ 400,000 $ 279,000 3rd Quarter $ 280,000 $ 269,900 4th Quarter $ 300,000 $ 289,000 The company's beginning cash balance for the upcoming fiscal year will be $34,000. 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.) × Answer is not complete. Garden Depot Cash Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Beginning cash balance Total cash receipts S 34,000 $ 10,000 S 250.000 400,000 96.000 S 280,000 107.000 x 300,000 ( Total cash available 284.000 410,000 376,000 407.000 1.230.000 1,264.000 Total cash disbursements 309,000 279.000 289,000 289,000 - 1,146,000 Excess (deficiency) of cash available over disbursements (25,000) 131,000 107,000 118,000 Financing: Borrowings 35,000 0 Repayments Interest 0 (35,000) 0 0 0 Sum Total financing 35,000 (35,000) 0 Ending cash balance IS 10,000 96,000 107,000 S 0 118,000
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