Total cash receipts Total cash disbursements 1st Quarter 2nd Quarter $ 210,000 $ 281,000 $360,000 $ 251,000 cash balance Required: Prepare the company's cash budget for the upcoming fiscal year. Note: Repayments and interest should be indicated by a minus sign. 3rd Quarter $ 240,000 $ 241,000 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. 4th Quarter $ 260,000 $ 261,000 Garden Depot Cash Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year

Total cash receipts Total cash disbursements 1st Quarter 2nd Quarter $ 210,000 $ 281,000 $360,000 $ 251,000 cash balance Required: Prepare the company's cash budget for the upcoming fiscal year. Note: Repayments and interest should be indicated by a minus sign. 3rd Quarter $ 240,000 $ 241,000 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. 4th Quarter $ 260,000 $ 261,000 Garden Depot Cash Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year

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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Need interest per month and borrowing
None
Newman Medical Clinic has budgeted the following cash flows. January February March $101,000 $107,000 $127,000 Cash receipts Cash payments For inventory purchases For S&A expenses Newman Medical had a cash balance of $8,500 on January 1. The company desires to maintain a cash cushion of $6,000. Funds are assumed to be borrowed, in increments of $1,000, and repaid on the last day of each month; the interest rate is 2 percent per month. Repayments may be made in any amount available. Newman pays its vendors on the last day of the month also. The company had a monthly $40,000 beginning balance in its line of credit liability account from this year's quarterly results. Cash Budget Beginning cash balance Add: Cash receipt Cash available Less: Cash payments 90,500 31,500 Required Prepare a cash budget. (Any repayments/shortage should be indicated with a minus sign. Round your answers to the nearest whole dollar amount.) For inventory purchases For S&A expenses Interest expense per month…
Subject: acounting
KAYAK COMPANYCash Budget JanuaryFebruaryMarchBeginning cash balance$30,000 $30,000 Add: Cash receipts525,000 400,000 450,000 Total cash available555,000 430,000 Less: Cash payments for All items excluding interest Interest on loan Total cash payments0 0 0 Preliminary cash balance Additional loan (loan repayment) Ending cash balance Loan balanceLoan balance - Beginning of month Additional loan (loan repayment) Loan balance, end of month$0 $0 $0
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Cash Budget Brindle Arts had the following Cash Budget for Quarter 1, 2022. The company requires a minimum cash balance of $ 50,000 Fill in the missing values: **If a cell has a value of 0, type the 0. A blank cell will be marked as incorrect. January February March Quarter 1 Beginning Cash balance $ 50,000 $ 166,756 $ 50,000 Add cash collections Total cash available $ 662,638 $ 673,643 $ 812,693 $ 1,931,075 Less total cash disbursements: Purchases $ 185,078 $ 189,439 Direct labor $ 86,875 $ 82,875 $ 249,750 Variable manufacturing OH $ 65,156 $ 62,156 $ 187,313 Fixed manufacturing OH $ 83,333 $ 83,333 Variable S&A $ 38,750 $ 43,750 $ 125,000 Fixed S&A $ 38,333 $ 38,333 Equipment $ 150,000 $…
Prepare Cash Budget For 3 Months Brewster Corporation expects the following cash receipts and disbursements during the first quarter of the year (receipts exclude new borrowings and disbursements exclude interest payments on borrowings since January 1) January February March $280,000 $300,000 $270,000 Cash receipts Cash disbursements 260,000 340,000 280,000 The expected cash balance at January 1, is $62,000. Brewster wants to maintain a cash balance at the end of each month of at least $60,000. Short-term borrowings at 1% interest per month will be used to accomplish this, if necessary. Borrowings (in multiples of $1,000) will be made at the beginning of the month in which they are needed, with interest for that month paid at the end of the month. Prepare a cash budget for the quarter ended March 31. Brewster Corporation Cash Budget for the Quarter Ended March 31 January Beginning cash balance Cash receipts Short-term borrowings Cash available Cash disbursements Interest payment Total…
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