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 $ 350,000 $ 393,000 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. Excess (deficiency) of cash available over disbursements Financing Borrowings Repayments Interest Total financing 2nd Quarter $ 470,000 $363,000 Required: Prepare the company's cash budget for the upcoming fiscal year. (Repayments, interest, and cash deficiencies should be indicated by a minus sign.) bolonn 1st Quarter Answer is complete but not entirely correct. Garden Depot Cash Budget 0 0 0 x x 0 3rd Quarter $ 400,000 $ 353,000 x 00 X 2nd Quarter 0 0 x X 0 x 4th Quarter $ 420,000 $ 373,000 00 XXI x 3rd Quarter 0 * 0 0 0 x x 00 00 00 4th Quarter 0 0 x 0 n x X 00 00 00 Is Year x x X X x *** Ox

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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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
$ 350,000
$ 393,000
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.
Excess (deficiency) of cash available over disbursements
Financing:
Borrowings
Repayments
Interest
2nd Quarter
$ 470,000
$ 363,000
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
$
Answer is complete but not entirely correct.
Garden Depot
Cash Budget
1st
Quarter
0
0
X
X
X
0
0
› › ›
X
0✓
3rd Quarter
$ 400,000
$ 353,000
0✔
$
2nd
Quarter
0
0
X
0
0
4th Quarter
$ 420,000
$ 373,000
X
0✔
X
X
$
3rd
Quarter
0
0
0♥
0✔
0♥
0
Ⓡ
0
$
4th
Quarter
0
0
x
X
0✔
0✔
0✔
0
0
$
Year
X
X
X
X
X
X
X
0x

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The cash budget is prepared to record the cash receipts and cash payments for the period. The cash budget helps to estimate the cash requirements for the future period.

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