Garden Depot is a retailer that provided the following budgeted cash flows for next year: 1st Quarter 2nd Quarter 3rd Quarter 4th QuarterTotal cash receipts $ 290,000 $ 410,000 $ 340,000 $ 360,000Total cash disbursements $ 351,000 $ 321,000 $ 311,000 $ 331,000The company’s beginning cash balance for next year will be $47,000. 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.
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 $ 290,000 $ 410,000 $ 340,000 $ 360,000
Total cash disbursements $ 351,000 $ 321,000 $ 311,000 $ 331,000
The company’s beginning cash balance for next year will be $47,000. 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.
AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.
Unlock instant AI solutions
Tap the button
to generate a solution
