Exercise $8-7($Algo$)$ Cash Budget $[$LO$8-8]$

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:

$1$st Quarter$2$nd Quarter$3$rd Quarter$4$th QuarterTotal cash receipts$ $200,000$$ $350,000$$ $230,000$$ $250,000$Total cash disbursements$ $274,000$$ $244,000$$ $234,000$$ $254,000$

The company$$s beginning cash balance for the upcoming fiscal year will be $$24,000.$ 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.

Note: Repayments, interest, and cash deficiencies should be indicated by a minus sign. $\backslash$begin$\{$tabular$\}\{|$c$|$c$|$c$|$c$|$c$|$c$|$c$|$c$|$c$|$c$|\}$

$\backslash$hline $\backslash$multicolumn$\{10\}\{|$c$|\}\{$Garden Depot$\}\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{10\}\{|$c$|\}\{$Cash Budget$\}\backslash \backslash$

$\backslash$hline & $\backslash$multicolumn$\{2\}\{|$l$|\}\{1$st Quarter$\}$ & $\backslash$multicolumn$\{2\}\{|$l$|\}\{2$nd Quarter$\}$ & $\backslash$multicolumn$\{2\}\{|$l$|\}\{3$rd Quarter$\}$ & $\backslash$multicolumn$\{2\}\{|$l$|\}\{4$th Quarter$\}$ & Year $\backslash \backslash$

$\backslash$hline Beginning cash balance & & & & & & & & & $\backslash \backslash$

$\backslash$hline Total cash receipts & & & & & & & & & $\backslash \backslash$

$\backslash$hline Total cash available & & $0$ & & $0$ & & $0$ & & $0$ & $\backslash \backslash$

$\backslash$hline Total cash disbursements & & & & & & & & & $\backslash \backslash$

$\backslash$hline Excess $($deficiency$)$ of cash available over disbursements & & $0$ & & $0$ & & $0$ & & $0$ & $\backslash \backslash$

$\backslash$hline Financing: & & & & & & & & & $\backslash \backslash$

$\backslash$hline Borrowings & & & & & & & & & $\backslash \backslash$

$\backslash$hline Repayments & & & & & & & & & $\backslash \backslash$

$\backslash$hline Interest & & & & & & & & & $\backslash \backslash$

$\backslash$hline Total financing & & $0$ & & $0$ & & $0$ & & $0$ & $\backslash \backslash$

$\backslash$hline Ending cash balance & $\backslash$$ & $0$ & $\backslash$$ & $0$ & $\backslash$$ & $0$ & $\backslash$$ & $0$ & $\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$