Garden Depot Is a retailer that provided the following budgeted cash flows for next year. 1st Quarter 2nd Quarter $410,000 $ 260,000 $ 316,000 $ 286,000 3rd Quarter $ 290,000 $ 276,000 Total cash receipts Total cash disbursements The company's beginning cash balance for next year will be $36,000. 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 4th Quarter $ 310,000 $ 296,000 $ S 1st Quarter 2nd Quarter 38,000 S (39,400) $ 260.000 410,000 296,000 370,600 316,000 288,000 (20.000) 84.600 (20.000) (20,000) 600 (39,400) (59,400) S 3rd Quarter 0 EEN O 4th Quarter 84,800 $ 290,000 374.600 276,000 98,600 0 LE D 0:0 0 84,500 $ 0 98,000 $. 98.500 $ 310,000 408,600 296,000 112,600 0 0 0 0 112,600 S Year 179,800 1,270,000 1,449,800 1,174,000 275,800 (20,000) (20,000) 600 (39,400) 236,400
Garden Depot Is a retailer that provided the following budgeted cash flows for next year. 1st Quarter 2nd Quarter $410,000 $ 260,000 $ 316,000 $ 286,000 3rd Quarter $ 290,000 $ 276,000 Total cash receipts Total cash disbursements The company's beginning cash balance for next year will be $36,000. 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 4th Quarter $ 310,000 $ 296,000 $ S 1st Quarter 2nd Quarter 38,000 S (39,400) $ 260.000 410,000 296,000 370,600 316,000 288,000 (20.000) 84.600 (20.000) (20,000) 600 (39,400) (59,400) S 3rd Quarter 0 EEN O 4th Quarter 84,800 $ 290,000 374.600 276,000 98,600 0 LE D 0:0 0 84,500 $ 0 98,000 $. 98.500 $ 310,000 408,600 296,000 112,600 0 0 0 0 112,600 S Year 179,800 1,270,000 1,449,800 1,174,000 275,800 (20,000) (20,000) 600 (39,400) 236,400
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:Garden Depot Is a retailer that provided the following budgeted cash flows for next year.
1st Quarter 2nd Quarter
$410,000
$ 260,000
$ 316,000 $ 286,000
3rd Quarter
$ 290,000
$ 276,000
Total cash receipts
Total cash disbursements
The company's beginning cash balance for next year will be $36,000. 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
4th Quarter
$ 310,000
$ 296,000
$
S
1st Quarter 2nd Quarter
38,000 S (39,400) $
260.000
410,000
296,000
370,600
316,000
288,000
(20.000)
84.600
(20.000)
(20,000)
600
(39,400)
(59,400) S
3rd Quarter
0
EEN O
4th Quarter
84,800 $
290,000
374.600
276,000
98,600
0
LE D
0:0
0
84,500 $
0
98,000 $.
98.500 $
310,000
408,600
296,000
112,600
0
0
0
0
112,600 S
Year
179,800
1,270,000
1,449,800
1,174,000
275,800
(20,000)
(20,000)
600
(39,400)
236,400
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