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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 3rd Quarter 4th Quarter $ 300,000 $ 358,000 $ 370,000 $ 338,000 The company's beginning cash balance for the upcoming fiscal year will be $35,000. 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. Beginning cash balance Total cash receipts Total cash available Total cash disbursements Excess (deficiency) of cash available over disbursements Financing: $ 420,000 $328,000 Required: Prepare the company's cash budget for the upcoming fiscal year. (Repayments, and interest, should be indicated by a minus sign.) Borrowings Repayments Interest Total financing Garden Depot Cash Budget 1st Quarter $ 35,000 300,000 335,000 358,000 (23,000) $350,000 $318,000 33,000 33,000 2nd Quarter 10,000 3rd Quarter $ 67,020 420,000 430,000 328,000 102,000 99,020 (33,000) (1,980) (34,980) 4th Quarter Year $ 99,020 $ 35,000 1,440,000 1,475,000 1,342,000 133,000 350,000 370,000 417,020 469,020 318,000 338,000 131,020 10 0 33,000 (33,000) 1,980 (1,980) 30

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 3rd Quarter 4th Quarter $ 300,000 $ 358,000 $ 370,000 $ 338,000 The company's beginning cash balance for the upcoming fiscal year will be $35,000. 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. Beginning cash balance Total cash receipts Total cash available Total cash disbursements Excess (deficiency) of cash available over disbursements Financing: $ 420,000 $328,000 Required: Prepare the company's cash budget for the upcoming fiscal year. (Repayments, and interest, should be indicated by a minus sign.) Borrowings Repayments Interest Total financing Garden Depot Cash Budget 1st Quarter $ 35,000 300,000 335,000 358,000 (23,000) $350,000 $318,000 33,000 33,000 2nd Quarter 10,000 3rd Quarter $ 67,020 420,000 430,000 328,000 102,000 99,020 (33,000) (1,980) (34,980) 4th Quarter Year $ 99,020 $ 35,000 1,440,000 1,475,000 1,342,000 133,000 350,000 370,000 417,020 469,020 318,000 338,000 131,020 10 0 33,000 (33,000) 1,980 (1,980) 30

FINANCIAL ACCOUNTING
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 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter $ 370,000 $ 338,000 $300,000 $ 358,000 Borrowings Repayments Interest The company's beginning cash balance for the upcoming fiscal year will be $35,000. 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. Beginning cash balance Total cash receipts Total cash available Total cash disbursements Excess (deficiency) of cash available over disbursements Financing: Total financing Endinn nach halanna $ 420,000 $ 328,000 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 $ 35,000 300,000 335,000 358,000 (23,000) $350,000 $318,000 33,000 33,000 € 10 000 2nd Quarter 4th 3rd Quarter Year Quarter 10,000 $ 67,020 $ 99,020 $ 35,000 420,000 350,000 370,000 1,440,000 430,000 417,020 469,020 1,475,000 328,000 318,000 338,000 1,342,000 102,000 133,000 (33,000) (1,980) (34,980) € 67.000 00 99,020 131,020 10 le da non 0 33,000 (33,000) 1,980 (1,980) le 131 non 0000
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 3rd Quarter 4th Quarter $ 370,000 $ 338,000 $300,000 $ 358,000 Borrowings Repayments Interest The company's beginning cash balance for the upcoming fiscal year will be $35,000. 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. Beginning cash balance Total cash receipts Total cash available Total cash disbursements Excess (deficiency) of cash available over disbursements Financing: Total financing Endinn nach halanna $ 420,000 $ 328,000 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 $ 35,000 300,000 335,000 358,000 (23,000) $350,000 $318,000 33,000 33,000 € 10 000 2nd Quarter 4th 3rd Quarter Year Quarter 10,000 $ 67,020 $ 99,020 $ 35,000 420,000 350,000 370,000 1,440,000 430,000 417,020 469,020 1,475,000 328,000 318,000 338,000 1,342,000 102,000 133,000 (33,000) (1,980) (34,980) € 67.000 00 99,020 131,020 10 le da non 0 33,000 (33,000) 1,980 (1,980) le 131 non 0000
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