Garden Depot Is a retaller that provided the following budgeted cash flows for next year. 1st Quarter $ 260,000 $ 316,000 2nd Quarter $ 410,000 $ 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 repald. For simplicity, assume Interest is not compounded. Required: Prepare the company's cash budget for next year. Note: Repayments, Interest, and cash deficlencles 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 S S 2nd Quarter 36,000 $ (39,400) 410.000 260,000 296,000 370,600 316,000 288,000 (20.000) 84.600 4th Quarter $ 310,000 $296,000 (20,000) (20,000) 600 (39.400) (50,400) S 0 $ 3rd Quarter 4th Quarter 84,800 $ 290,000 374.600 276,000 98,600 HASSANDO A D 0 84.600 $ MYRAS 0 0 0 98,000 $ 98,600 $ 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
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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