Garden Depot is a retailer that provided the following budgeted cash flows for next year: Total cash receipts Total cash disbursements 1st Quarter $ 180,000 2nd Quarter $ 330,000 3rd Quarter $ 210,000 4th Quarter $ 230,000 $ 260,000 $ 230,000 $ 220,000 $ 240,000 The company's beginning cash balance for next year will be $20,000. 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. Beginning cash balance Total cash receipts Total cash available Total cash disbursements Excess (deficiency) of cash available over disbursements Financing: Borrowings Repayments Interest Total financing Ending cash balance Garden Depot Cash Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year 0 0 0 0 0 0 0 0 0 0 0 $ 0 $ 0 $ 0
Garden Depot is a retailer that provided the following budgeted cash flows for next year: Total cash receipts Total cash disbursements 1st Quarter $ 180,000 2nd Quarter $ 330,000 3rd Quarter $ 210,000 4th Quarter $ 230,000 $ 260,000 $ 230,000 $ 220,000 $ 240,000 The company's beginning cash balance for next year will be $20,000. 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. Beginning cash balance Total cash receipts Total cash available Total cash disbursements Excess (deficiency) of cash available over disbursements Financing: Borrowings Repayments Interest Total financing Ending cash balance Garden Depot Cash Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year 0 0 0 0 0 0 0 0 0 0 0 $ 0 $ 0 $ 0
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:
Total cash receipts
Total cash disbursements
1st Quarter
$ 180,000
2nd Quarter
$ 330,000
3rd Quarter
$ 210,000
4th Quarter
$ 230,000
$ 260,000
$ 230,000
$ 220,000
$ 240,000
The company's beginning cash balance for next year will be $20,000. 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.
Beginning cash balance
Total cash receipts
Total cash available
Total cash disbursements
Excess (deficiency) of cash available over disbursements
Financing:
Borrowings
Repayments
Interest
Total financing
Ending cash balance
Garden Depot
Cash Budget
1st Quarter
2nd Quarter
3rd Quarter
4th Quarter
Year
0
0
0
0
0
0
0
0
0
0
0
$
0
$
0
$
0
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