**Chapter 8 Homework - Cash Budget Preparation**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 indicated by a minus sign.)**Garden Depot Cash Budget**| | 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | Year || --------------------- | ----------- | ----------- | ----------- | ----------- | ---- || 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 | 0 | 0 | 0 | 0 | 0 |The schedule above provides the framework for preparing a cash budget. The total amounts for cash receipts and cash disbursements for each quarter should be filled in, as well as calculations for financing to ensure the ending cash balance meets the company's requirements.

A cash budget is a forecast of projected cash collections and expenditures over the course of a…

Answered: Total cash receipts Total cash…

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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A. What are the expected revenues for S2BU for each month, April through September? Revenues are recorded in the month of the occasion. B. What are the expected cash receipts for each month, April through July?
Brewster Corporation expects the following cash receipts and disbursements during the first quarter of 2016 (receipts exclude new borrowings and disbursements exclude interest payments on borrowings since January 1, 2016) January February March Cash receipts $300,000 $320,000 $290,000 Cash disbursements 280,000 360,000 300,000 The expected cash balance at January 1, 2016, is $82,000. Brewster wants to maintain a cash balance at the end of each month of at least $80,000. 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, 2016. Brewster CorporationCash Budget for the Quarter EndedMarch 31, 2016 January February March Beginning cash balance Answer Answer Answer Cash receipts Answer…
the second quarter of 2021: Credit sales Credit purchases Cash disbursements Wages, taxes, and expenses Interest Equipment purchases Beginning cash balance Cash receipts Cash collections from credit sales Total cash available Cash disbursements The company predicts that 5 percent of its credit sales will never be collected, 30 percent of its sales will be collected in the month of the sale, and the remaining 65 percent will be collected in the following month. Credit purchases will be paid in the month following the purchase. Purchases Wages, taxes, and expenses Interest In March 2021, credit sales were $190,000 and credit purchases were $130,000. Using this information, complete the following cash budget: (Do not round intermediate calculations. Leave no cells blank - be certain to enter "0" wherever required.) Equipment purchases April May June $320,000 $300,000 $360,000 128,000 151,000 176,000 Total cash disbursements 44,000 11,000 80,000 Ending cash balance 11,500 11,000 150,000 $…
Karim Corp. requires a minimum $9,000 cash balance. Loans taken to meet this requirement cost 1% interest per month (paid monthly). Any excess cash is used to repay loans at month-end. The cash balance on July 1 is $9,400, and the company has no outstanding loans. Forecasted cash receipts (other than for loans received) and forecasted cash payments (other than for loan or interest payments) follow. July August September Cash receipts $ 25,000 $ 33,000 $ 41,000 Cash payments 29,500 31,000 33,000 Prepare a cash budget for July, August, and September. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Round your final answers to the nearest whole dollar.) KARIM CORP. Cash Budget For July, August, and September July August September Beginning cash balance $9,400 Total cash available Preliminary cash balance Ending cash…
The beginning cash balance is $18,000. Sales are forecasted at $860,000 of which 80% will be on account. Seventy percent of credit sales are expected to be collected in the year of sale. Cash expenditures for the year are forecasted at $475,000. Accounts Receivable from previous accounting periods totaling $11,300 will be collected in the current year. The company is required to make a $14,000 loan payment and an annual interest payment on the last day of every year. The loan balance as of the beginning of the year is $95,000, and the annual interest rate is 8%. Compute the excess of available cash over cash disbursements. Excess of available cash over cash disbursements $
Raghubhai
The following is a December 31, 2021, post-closing trial balance for Almway Corporation. Account Title Debits Credits $ 67,000 132,000 71,000 211,000 Cash Investment in equity securities Accounts receivable Inventory Prepaid insurance (for the next 9 months) 9,000 Land 112,000 Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation-equipment Patent (net) Accounts payable Notes payable Interest payable Bonds Payable 431,000 $ 111,000 121,000 71,000 21,000 97,000 163,000 31,000 251,000 333,000 118,000 $1,175,000 $1,175,000 Common stock Retained earnings Totals Additional information: 1. The investment in equity securities account includes an investment in common stock of another corporation of $41,000 which management intends to hold for at least three years. The balance of these investments is intended to be sold in the coming year. 2. The land account includes land which cost $36,000 that the company has not used and is currently listed for sale. 3. The cash…
pvn.2
The company wants to maintain a minimum cash balance of $35,000 and borrows from the local bank as needed in increments of $1,000 at the beginning of the quarter. Principal repayments are made at the beginning of the quarter when excess funds are available and in increments of $1,000. Interest is 6% per year and paid at the beginning of the quarter based on the amount outstanding from the previous quarter Kiara's Coats Cash Budget For the year ended December 31, 2021 First Quarter Second Quarter Third Quarter Fourth Quarter Total Beginning cash balance $38,000 $35,569 $35,185 Cash receipts $71,600 $75,400 91,650 107,900 346,550 Cash available $109,600 $110,969 126,835 Cash payments: Total cash payments before interest $107,031 $52,289 57,755 63,639 280,714 Interest expense $0 $495 495 Total cash payments $107,031 $52,784 58,250 Ending cash balance before financing $2,569 $58,185 68,535 Minimum cash balance desired…

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