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: Total cash receipts Total cash disbursements 1st Quarter 2nd Quarter $ 250,000 $ 400,000 $ 309,000 $ 279,000 The company's beginning cash balance for the upcoming fiscal year will be $34,000. 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. Beginning cash balance. Total cash receipts Total cash available Total cash disbursements Excess (deficiency) of cash available over disbursements Financing: Borrowings Repayments Interest Total finanrinn 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 $ 3rd Quarter $ 280,000 $ 269,000 34,000 $ 250,000 284,000 284,000 2nd Quarter 4th Quarter $ 300,000 $ 289,000 10,000 400,000 410,000 410,000 3rd Quarter 4th Quarter 280,000 280,000 280,000 300,000 300,000 300,000 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: Total cash receipts Total cash disbursements 1st Quarter 2nd Quarter $ 250,000 $ 400,000 $ 309,000 $ 279,000 The company's beginning cash balance for the upcoming fiscal year will be $34,000. 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. Beginning cash balance. Total cash receipts Total cash available Total cash disbursements Excess (deficiency) of cash available over disbursements Financing: Borrowings Repayments Interest Total finanrinn 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 $ 3rd Quarter $ 280,000 $ 269,000 34,000 $ 250,000 284,000 284,000 2nd Quarter 4th Quarter $ 300,000 $ 289,000 10,000 400,000 410,000 410,000 3rd Quarter 4th Quarter 280,000 280,000 280,000 300,000 300,000 300,000 Year
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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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