Garden Depot is a retailer that is preparing its budget for the upcoming fiscal year. Management...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
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: Total cash receipts Total cash disbursements 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter $ 210,000 $ 281,000 $ 360,000 $ 251, 000 $ 240,000 $ 241,000 $ 260,000 $ 261,000 The company's beginning cash balance for the upcoming fiscal year will be $26,000. 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: 26,000 $ 10,000 210,000 360,000 240,000 240,000 241,000 1,070,000 260,000 260,000 261,000 236,000 370,000 251,000 119,000 281,000 1,034,000 (45,000) (1,000) (1,000) Borrowings Repayments Interest Total financing Ending cash balance $ (45,000) $ 119,000 S (1,000) $ (1,000) 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: Total cash receipts Total cash disbursements 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter $ 210,000 $ 281,000 $ 360,000 $ 251, 000 $ 240,000 $ 241,000 $ 260,000 $ 261,000 The company's beginning cash balance for the upcoming fiscal year will be $26,000. 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: 26,000 $ 10,000 210,000 360,000 240,000 240,000 241,000 1,070,000 260,000 260,000 261,000 236,000 370,000 251,000 119,000 281,000 1,034,000 (45,000) (1,000) (1,000) Borrowings Repayments Interest Total financing Ending cash balance $ (45,000) $ 119,000 S (1,000) $ (1,000)
Expert Answer:
Answer rating: 100% (QA)
A B E F 1 Solution 2 Garden Depot Cash Budget 4 5 in 6 Particulars 7 Beginning Cash Balance 8 Total ... 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:
Students also viewed these accounting questions
-
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: The companys beginning cash balance for...
-
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: The company?s beginning cash balance...
-
Forest Outfitters is a retailer that is preparing its budget for the upcoming fiscal year. Management has prepared the following summary of its budgeted cash flows: The companys beginning cash...
-
Draw a topology on paper that will show the connection between home network and College (LAN) using conventional symbols used in networking? (10) Home Network: 1 connecting device 1 Wireless devices...
-
On January 1, 2010, Aye buys 500 shares of Que, a public company, for $1.20 per share. On January 4, 2011, Aye buys 200 shares of Are, a public company for $0.84 per share. On September 1, 2012, Aye...
-
Heating 2.40 g of the oxide of metal X (molar mass of X = 55.9 g/mol) in carbon monoxide (CO) yields the pure metal and carbon dioxide. The mass of the metal product is 1.68 g. From the data given,...
-
Define requirements.
-
At the companys quarterly strategy meeting, senior management decided to expand into business education materials aimed at corporations that require entry-level and mid-level managers to complete...
-
what extent do postcolonial theories inform our understanding of empowerment dynamics in global contexts ? Explain
-
Obtain the general solution of the following differential equations: (a) (D 2D + 5)y = 0 (b) (D6 + 9D* + 24D + 16)y = 0
-
Harry Styles, age 67, receives $27,000 per annum from his part-time job at Costco and he receives another $33,000 per year from a registered pension plan he contributed to when working full-time as...
-
Kerstin Dugmore plans to send their kids to college in 4 years and will need another $13,420.00 before they can do so. Given an interest rate of 1.00% compounded tri-annually, how much money do they...
-
Liability insurance is First-party insurance. Fourth-party insurance. Third-party insurance. Second-party insurance. best answer?
-
Apply the Ke formula that you learned in the chapter to a stock from a US corporation that is currently trading. Use a constant growth rate of 4%. Explain what you have discovered
-
List and explain 2 methods of common forms of verifiable evidence that could be used to review customer satisfaction.
-
Asset allocation funds typically invest in Blank______. Multiple select question. money market instruments broadway plays bonds stocks real estate
-
Plant 1 Plant 2 Plant 3 Plant 4 Plant 5 Demand (units/year) Plant 1 Plant 2 Plant 3 Plant 4 Plant 5 Excess Capaity Plant 1 Plant 2 Plant 3 Plant 4 Plant 5 Total Cost Market 1 Market 1 0 0 0 0 0...
-
Les has collected stamps in his spare time for years. He purchased many of his stamps at a price much lower than the current market value. Les recently lost his job as a carpenter. Since his wife...
-
Define the following terms, differential cost, opportunity cost, and sunk cost.
-
Primara Corporation has a standard cost system in which it applies overhead to products based on the standard direct labor-hours allowed for the actual output of the period. Data concerning the most...
-
Following are a number of cost terms introduced in the chapter: Variable cost......................... Product cost Fixed cost............................... Sunk cost Prime...
-
Consider a stochastic process such that the underlying security \(S\) follows the model: \[d S_{t}=\mu S_{t} d t+\sigma_{t} S_{t} d Z_{t}\] where \(Z\) is a standard Brownian motion. Suppose the...
-
Calculate the solution to the following SDE: \[d X_{t}=\alpha\left(m-X_{t} ight) d t+\sigma d B_{t}\] with \(X_{0}=x\). The process satisfying this equation is called the meanreverting...
-
If \(X_{t} \sim N(0, t)\), calculate the distribution of \(\left|X_{t} ight|\). Calculate \(\mathbf{E}\left|X_{t} ight|\) and \(V\left(\left|X_{t} ight| ight)\).
Study smarter with the SolutionInn App