Garden Depot is a retailer that provided the following budgeted cash flows for next year: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total cash receipts $ 220,000 S 370,000 $ 250,000 $ 270,000 Total cash disbursements $ 288,000 $ 258,000 $ 248,000 $ 268,000 The company's beginning cash balance for next year will be $28,000. The company requires a minimum cash balance of $10,000 and may borrow money at the beginning of any quarter and may repay any part of its loans at the end of any quarter. Interest payments, based on a quarterly interest rate of 3%, are due on any principal at the time it is repaid. For simplicity, assume interest is not compounded. Required: Prepare the company's cash budget for next year. Note: Repayments, Interest, and cash deficiencies should be indicated by a minus sign.
Garden Depot is a retailer that provided the following budgeted cash flows for next year: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total cash receipts $ 220,000 S 370,000 $ 250,000 $ 270,000 Total cash disbursements $ 288,000 $ 258,000 $ 248,000 $ 268,000 The company's beginning cash balance for next year will be $28,000. The company requires a minimum cash balance of $10,000 and may borrow money at the beginning of any quarter and may repay any part of its loans at the end of any quarter. Interest payments, based on a quarterly interest rate of 3%, are due on any principal at the time it is repaid. For simplicity, assume interest is not compounded. Required: Prepare the company's cash budget for next year. Note: Repayments, Interest, and cash deficiencies should be indicated by a minus sign.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Garden Depot is a retailer that provided the following budgeted cash flows for next year:
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
Total cash receipts $ 220,000 $ 370,000 $ 250,000 $ 270,000
Total cash disbursements $288,000 $ 258,000 $ 248,000 $ 268,000
The company's beginning cash balance for next year will be $28,000. The company requires a minimum cash balance of $10,000 and may borrow money at the beginning of any quarter and may repay any part of its loans at the end of any quarter.
Interest payments, based on a quarterly interest rate of 3%, are due on any principal at the time it is repaid. For simplicity, assume interest is not compounded.
Required: Prepare the company's cash budget for next year.
Note: Repayments, interest, and cash deficiencies should be indicated
a minus sign.
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