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Garden Depot is a retailer that is preparing its budget for the upcoming fiscal year. Management has prepared: 1. Schedule of expected cash collections; 2.

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Garden Depot is a retailer that is preparing its budget for the upcoming fiscal year. Management has prepared: 1. Schedule of expected cash collections; 2. Schedule of cash disbursements for purchases; and 3. Schedule of cash disbursements for operating expenses. The company's beginning cash balance for the upcoming fiscal year will be $48,000. The minimum cash balance of $30,000 will be required. The company may borrow any amount needed from a local bank 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 at a quarterly interest rate of 3%, Required: Prepare the company's cash budget for the upcoming fiscal year. Jan Feb Mar Quarter Description Schedule of expected cash collections (S) Cash sales Credit sales Total cash collections ........ 80.000 224.000 120.000 320.000 60.000 1480.000 260.000 1.024.000 180.000 Inventory purchases budget (S) Budgeted cost of goods sold Add desired ending inventory......... Total needs. Less beginning inventory............. Required purchases...................... 90.000 330.000 240.000 45.000 405.00) 60.000 360.000 30.000 210.000 90.000 45.000 Schedule of cash disbursements for purchases (S) From December Purchases............. January purchases Feb purchases. March purchases... Total cash disbursements for purchases 93.000 135.000 135.000 157.500 157.500 82.500 Schedule of cash disbursements for operating expenses (S) Salaries and wages................ Advertising ...................... Shipping Other expenses Total cash disbursements for operating expenses............ 27.000 70.000 20.000 12.000 27.000 70.000 30,000 18.000 27.000 70.000 15.000 9,000 48.000 Cash budget (S) Cash balance, beginning Add cash collections Total cash available Less disbursements: Purchases of inventory............. Operating expenses ... Purchases of equipment..... Cash dividends Total disbursements Excess (deficiency) of cash........... 0 Othere is no dividend for the quarter Financing Borrowing...... Repayments... Interest ........ Total financing Cash balance, ending

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