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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 $ 330,000 $ 379,000 Beginning cash balance Total cash receipts Total cash available Total cash disbursements Excess (deficiency) of cash available over disbursements Financing: Borrowings Repayments Interest 2nd Quarter $ 450,000 $ 349,000 The company's beginning cash balance for the upcoming fiscal year will be $22,000. 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. Total financing Ending cash balance 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 $ 380,000 $ 339,000 $ Garden Depot Cash Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter $ 22,000 $ 330,000 352,000 379,000 (27,000) 0 (27,000) 4th Quarter $ 400,000 $ 359,000 $ 10,000 450,000 460,000 349,000 111,000 0 111,000 $ 380,000 380,000 339,000 41,000 0 41,000 $ 400,000 400,000 359,000 41,000 0 41,000 Year

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 $ 330,000 $ 379,000 Beginning cash balance Total cash receipts Total cash available Total cash disbursements Excess (deficiency) of cash available over disbursements Financing: Borrowings Repayments Interest 2nd Quarter $ 450,000 $ 349,000 The company's beginning cash balance for the upcoming fiscal year will be $22,000. 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. Total financing Ending cash balance 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 $ 380,000 $ 339,000 $ Garden Depot Cash Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter $ 22,000 $ 330,000 352,000 379,000 (27,000) 0 (27,000) 4th Quarter $ 400,000 $ 359,000 $ 10,000 450,000 460,000 349,000 111,000 0 111,000 $ 380,000 380,000 339,000 41,000 0 41,000 $ 400,000 400,000 359,000 41,000 0 41,000 Year

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter8: Budgeting
Section: Chapter Questions
Problem 3PA: Budgeted income statement and supporting budgets The budget director of Birding Homes Feeders Inc.,...
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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 Beginning cash balance Total cash receipts Total cash available Total cash disbursements 1st Quarter $ 330,000 $ 379,000 The company's beginning cash balance for the upcoming fiscal year will be $22,000. 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. Excess (deficiency) of cash available over disbursements Financing: Borrowings Repayments Interest 2nd Quarter $ 450,000 $ 349,000 Required: Prepare the company's cash budget for the upcoming fiscal year. (Repayments, interest, and cash deficiencies should be indicated by a minus sign.) Total financing Ending cash balance 3rd Quarter $ 380,000 $ 339,000 0 Garden Depot Cash Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter $ 22,000 $ 330,000 352,000 379,000 SALS (27,000) 4th Quarter $ 400,000 $ 359,000 10,000 450,000 460,000 349,000 111,000 0 $ (27,000) $ 111,000 $ 380,000 380,000 339,000 41,000 0 41,000 $ 400,000 400,000 359,000 41,000 0 41,000 Year
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 Beginning cash balance Total cash receipts Total cash available Total cash disbursements 1st Quarter $ 330,000 $ 379,000 The company's beginning cash balance for the upcoming fiscal year will be $22,000. 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. Excess (deficiency) of cash available over disbursements Financing: Borrowings Repayments Interest 2nd Quarter $ 450,000 $ 349,000 Required: Prepare the company's cash budget for the upcoming fiscal year. (Repayments, interest, and cash deficiencies should be indicated by a minus sign.) Total financing Ending cash balance 3rd Quarter $ 380,000 $ 339,000 0 Garden Depot Cash Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter $ 22,000 $ 330,000 352,000 379,000 SALS (27,000) 4th Quarter $ 400,000 $ 359,000 10,000 450,000 460,000 349,000 111,000 0 $ (27,000) $ 111,000 $ 380,000 380,000 339,000 41,000 0 41,000 $ 400,000 400,000 359,000 41,000 0 41,000 Year
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