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 canh dinbursenenta 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter $ 360,000 $ 251,000 $210,000 $ 281,000 $ 240,000 $ 241,000 $ 260,000 $ 261,000 The company's beginning cash balance for the upcoming fiscal year will be $26,000, 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, and Interest, 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 Total cash avallable Total cash disbursements Excess of cash available over disbursements Financing Borrowings Repayments Interest Total financing 0. Ending cash balance
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 canh dinbursenenta 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter $ 360,000 $ 251,000 $210,000 $ 281,000 $ 240,000 $ 241,000 $ 260,000 $ 261,000 The company's beginning cash balance for the upcoming fiscal year will be $26,000, 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, and Interest, 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 Total cash avallable Total cash disbursements Excess of cash available over disbursements Financing Borrowings Repayments Interest Total financing 0. Ending cash balance
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Garden Depot is a retaler 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 canh dinbursenenta
ist Quarter 2nd Quarter 3rd Quarter 4th Quarter
$ 360,000
$ 251,000
$ 210,000
$ 281,000
$ 240,000
$ 241,000
$ 260,000
$ 261,000
The company's beginning cash balance for the upcoming fiscal year will be $26,000. 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, and interest, 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
Total cash avallable
Total cash disbursements
Excens of cash available over disbursements
Financing
Borrowings
Repayments
Interest
Total financing
Ending cash balance
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