Garden Depot is a retailer that is preparing its budget for the upcoming fiscal year. Management has prepared the following summaryof its budgeted cash flows:Total cash receiptsTotal cash disbursements1st Quarter$ 210,000$ 281,000The company's beginning cash balance for the upcoming fiscal year will be $26,000. The company requires a minimum cash balanceof $10,000 and may borrow any amount needed from a local bank at a quarterly interest rate of 3%. The company may borrow anyamount at the beginning of any quarter and may repay its loans, or any part of its loans, at the end of any quarter. Interest paymentsare due on any principal at the time it is repaid. For simplicity, assume that interest is not compounded.Beginning cash balanceTotal cash receiptsTotal cash availableTotal cash disbursementsExcess (deficiency) of cash available over disbursementsFinancing:BorrowingsRepaymentsInterestRequired:Prepare the company's cash budget for the upcoming fiscal year. (Repayments and Interest should be indicated by a minus sign.)Total financingEnding cash balance2nd Quarter 3rd Quarter$ 360,000 $ 240,000$ 251,000$ 241,000SGarden DepotCash Budget1st QuarterS2nd Quarter26,000 S210,000236,000(281,000)(45,000)55,0000055,00010,000 S10,000 S360,000370,000(251,000)119,0004th Quarter$ 260,000$ 261,000055,0001,65056,650175,6503rd Quarter 4th Quarter62,350 $240,000302,350(241,000)61,350S000061,350S61,350 S260,000321,350(261,000)60,350000060,350SYear159,7001,070,0001,229,700(1,034,000)195,70055,00055,0001,650111,650307,350

Cash budget is the statement which is prepared for determining the cash receipts and payments for a…

Garden Depot is a retaller 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 $ 210,000 $ 281,000 2nd Quarter $ 360,000 $ 251,000 3rd Quarter $ 240,000 $ 241,000 4th Quarter $ 260,000 $ 261,000 The company's beginning cash balance for the upcoming fiscal year will be $26,000. 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. Required: Prepare the company's cash budget for the upcoming fiscal year. (Repayments and Interest should be indicated by a minus sign.)

Garden Depot is a retaller 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 $ 210,000 $ 281,000 2nd Quarter $ 360,000 $ 251,000 3rd Quarter $ 240,000 $ 241,000 4th Quarter $ 260,000 $ 261,000 The company's beginning cash balance for the upcoming fiscal year will be $26,000. 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. Required: Prepare the company's cash budget for the upcoming fiscal year. (Repayments and Interest should be indicated by a minus sign.)

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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am. 119.
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