EXERCISE 8-7 Cash Budget 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: 4th Quarter Total cash receipts Total cash disbursements 1st Quarter 2nd Quarter 3rd Quarter $180,000 $330,000 $210,000 $260,000 $230,000 $220,000 $230,000 $240,000 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. 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. For simplicity, ignore interest expense. Required: Prepare the company's cash budget for the upcoming fiscal year. NOTE: The problem above has been revised to exclude interest expense. If you are using the problem as worded in the textbook, ignore interest expense. : A D E F. G H J K B C Chapter 8: Exercise 8-7 Cash Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Beginning Cash Balance Add: Cash Collections Total Cash Available Less: Cash Disbursements Excess (Deficiency) of Cash Credit Line Borrowing (Repayment) Ending Cash Balance Credit Line Balance NOTE: Cash Budget excludes interest expense on Credit Line