Garden Depot is a retailer that is preparing its budget for the upcoming fiscal year. Management...
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Garden Depot is a retailer that is preparing its budget for the upcoming fiscal year. Management has prepared the following summary of its budgeted cash flows: 2nd Quarter 3rd Quarter $450,000 $380,000 $349,000 $339,000 Total cash receipts Total cash disbursements The company's beginning cash balance for the upcoming fiscal year will be $22,000. 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: Complete the company's cash budget for the upcoming fiscal year. Beginning cash balance Total cash receipts Total cash available 1st Quarter $330,000 $379,000 Less total cash disbursements Excess (deficiency) of cash available over disbursements Financing: Borrowings Repayments Interest Total financing Ending cash balance 4th Quarter $400,000 $359,000 Garden Depot Cash Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Garden Depot is a retailer that is preparing its budget for the upcoming fiscal year. Management has prepared the following summary of its budgeted cash flows: 2nd Quarter 3rd Quarter $450,000 $380,000 $349,000 $339,000 Total cash receipts Total cash disbursements The company's beginning cash balance for the upcoming fiscal year will be $22,000. 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: Complete the company's cash budget for the upcoming fiscal year. Beginning cash balance Total cash receipts Total cash available 1st Quarter $330,000 $379,000 Less total cash disbursements Excess (deficiency) of cash available over disbursements Financing: Borrowings Repayments Interest Total financing Ending cash balance 4th Quarter $400,000 $359,000 Garden Depot Cash Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year
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To complete Garden Depots cash budget for the upcoming fiscal year we need to calculate the excess or deficiency of cash available over disbursements ... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-0697789938
13th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Posted Date:
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