Total cash receipts Total cash disbursements 1st Quarter $ 180,000 $ 260,000 2nd Quarter $ 330,000 $ 230, e00 3rd Quarter 4th Quarter $ 210,000 $ 220,000 $ 230,000 $ 240,00 The company's beginning cash balance for the upcoming fiscal year will be $20,000. 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 indiceted by a minus sign.) Garden Depot Cash Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Beginning cash balance $ 20 000 $ 20 000 Total cash recepts 180 000 330.000 210.000 230 000 950,000 970 000 950 000 Total cash available 200.000 000 210 000 230,000 230,000 100 000 220.000 (10,000) Total cash disbursements 260.000 240.000 Excess (deficency) of cash available over disbursements (60 000) (10.000) 20 000 Financing Borrowngs 70,000 70 000 Repayments (70.000) (70,000) Interest Total financing 70.000 (70 000) $ 10.000 S 30,000 S (10,000) S (10 000) Ending cash balance
Total cash receipts Total cash disbursements 1st Quarter $ 180,000 $ 260,000 2nd Quarter $ 330,000 $ 230, e00 3rd Quarter 4th Quarter $ 210,000 $ 220,000 $ 230,000 $ 240,00 The company's beginning cash balance for the upcoming fiscal year will be $20,000. 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 indiceted by a minus sign.) Garden Depot Cash Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Beginning cash balance $ 20 000 $ 20 000 Total cash recepts 180 000 330.000 210.000 230 000 950,000 970 000 950 000 Total cash available 200.000 000 210 000 230,000 230,000 100 000 220.000 (10,000) Total cash disbursements 260.000 240.000 Excess (deficency) of cash available over disbursements (60 000) (10.000) 20 000 Financing Borrowngs 70,000 70 000 Repayments (70.000) (70,000) Interest Total financing 70.000 (70 000) $ 10.000 S 30,000 S (10,000) S (10 000) Ending cash balance
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
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Transcribed Image Text:Total cash receipts
Total cash disbursements
1st Quarter
$ 180,000
$ 260,000
2nd Quarter
$ 330,000
$ 230, e00
3rd Quarter 4th Quarter
$ 210,000
$ 220,000
$ 230,000
$ 240,00
The company's beginning cash balance for the upcoming fiscal year will be $20,000. 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 indiceted by a minus sign.)
Garden Depot
Cash Budget
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
Year
Beginning cash balance
$ 20 000
$ 20 000
Total cash recepts
180 000
330.000
210.000
230 000
950,000
970 000
950 000
Total cash available
200.000
000
210 000
230,000
230,000
100 000
220.000
(10,000)
Total cash disbursements
260.000
240.000
Excess (deficency) of cash available over disbursements
(60 000)
(10.000)
20 000
Financing
Borrowngs
70,000
70 000
Repayments
(70.000)
(70,000)
Interest
Total financing
70.000
(70 000)
$ 10.000 S
30,000 S (10,000) S (10 000)
Ending cash balance
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