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Total cash receipts Total cash disbursements 1st Quarter $ 180,000 $ 260,000 2nd Quarter $ 330,000 $ 230,000 3rd Quarter $ 210,000 $ 220,000 4th Quarter $ 230,000 $ 240,000 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, interest, and cash deficiencies should be indicated by a minus sign.) Answer is not complete. Garden Depot Cash Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Beginning cash balance Total cash receipts $ 20,000 $ 10,000 $ 35,800 $ 25,800 $ 20,000 180,000 210,000 230,000 950,000 Total cash available 200,000 10,000 245,800 255,800 970,000 Total cash disbursements 260,000 230,000 220,000 240,000 950,000 Excess (deficiency) of cash available over disbursements (60,000) (220,000) 25,800 15,800 Financing: Borrowings Repayments 70,000 0 0 0 70,000 0 (70,000) 0 0 (70,000) Interest Total financing 0 (4,200) 0 0 (4,200) 70,000 (74,200) 0 0 (74,200) X Ending cash balance $ 10,000 $ (294,200) $ 25,800 $ 15,800 $ 15,800

Total cash receipts Total cash disbursements 1st Quarter $ 180,000 $ 260,000 2nd Quarter $ 330,000 $ 230,000 3rd Quarter $ 210,000 $ 220,000 4th Quarter $ 230,000 $ 240,000 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, interest, and cash deficiencies should be indicated by a minus sign.) Answer is not complete. Garden Depot Cash Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Beginning cash balance Total cash receipts $ 20,000 $ 10,000 $ 35,800 $ 25,800 $ 20,000 180,000 210,000 230,000 950,000 Total cash available 200,000 10,000 245,800 255,800 970,000 Total cash disbursements 260,000 230,000 220,000 240,000 950,000 Excess (deficiency) of cash available over disbursements (60,000) (220,000) 25,800 15,800 Financing: Borrowings Repayments 70,000 0 0 0 70,000 0 (70,000) 0 0 (70,000) Interest Total financing 0 (4,200) 0 0 (4,200) 70,000 (74,200) 0 0 (74,200) X Ending cash balance $ 10,000 $ (294,200) $ 25,800 $ 15,800 $ 15,800

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter8: Budgeting
Section: Chapter Questions
Problem 18E
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Total cash receipts Total cash disbursements 1st Quarter $ 180,000 $ 260,000 2nd Quarter $ 330,000 $ 230,000 3rd Quarter $ 210,000 $ 220,000 4th Quarter $ 230,000 $ 240,000 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, interest, and cash deficiencies should be indicated by a minus sign.) Answer is not complete. Garden Depot Cash Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Beginning cash balance Total cash receipts $ 20,000 $ 10,000 $ 35,800 $ 25,800 $ 20,000 180,000 210,000 230,000 950,000 Total cash available 200,000 10,000 245,800 255,800 970,000 Total cash disbursements 260,000 230,000 220,000 240,000 950,000 Excess (deficiency) of cash available over disbursements (60,000) (220,000) 25,800 15,800 Financing: Borrowings Repayments 70,000 0 0 0 70,000 0 (70,000) 0 0 (70,000) Interest Total financing 0 (4,200) 0 0 (4,200) 70,000 (74,200) 0 0 (74,200) X Ending cash balance $ 10,000 $ (294,200) $ 25,800 $ 15,800 $ 15,800
Transcribed Image Text:Total cash receipts Total cash disbursements 1st Quarter $ 180,000 $ 260,000 2nd Quarter $ 330,000 $ 230,000 3rd Quarter $ 210,000 $ 220,000 4th Quarter $ 230,000 $ 240,000 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, interest, and cash deficiencies should be indicated by a minus sign.) Answer is not complete. Garden Depot Cash Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Beginning cash balance Total cash receipts $ 20,000 $ 10,000 $ 35,800 $ 25,800 $ 20,000 180,000 210,000 230,000 950,000 Total cash available 200,000 10,000 245,800 255,800 970,000 Total cash disbursements 260,000 230,000 220,000 240,000 950,000 Excess (deficiency) of cash available over disbursements (60,000) (220,000) 25,800 15,800 Financing: Borrowings Repayments 70,000 0 0 0 70,000 0 (70,000) 0 0 (70,000) Interest Total financing 0 (4,200) 0 0 (4,200) 70,000 (74,200) 0 0 (74,200) X Ending cash balance $ 10,000 $ (294,200) $ 25,800 $ 15,800 $ 15,800
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