Garden Depot is a retailer that provided the following budgeted cash flows for next year.

1^st Quarter 2^nd Quarter 3^rd Quarter 4^th Quarter

Total cash receipts $320,000 $440,000 $370,000 $390,000

Total cash disbursements $372,000 $342,000 $332,000 $352,000

The companys beginning cash balance for the next year will be $27,000. The company requires a minimum cash balance of $10,000 and may borrow money at the beginning of any quarter and may repay any part of its loan at the end of any quarter. Interest payments based on quarterly interest rate of 3% are due on any principal at the time it is repaid. For simplicity, assume interest is not compounded.

Required:

Prepare the companys cash budget for the next year.

Note: repayments, intertest and cash deficiencies should be indicated by a minus sign.

Garden Depot

Cash Budget

1^st Quarter 2^nd Quarter 3^rd Quarter 4^th Quarter

Beginning Cash Balance

Total cash receipts

Total cash available

Total cash disbursements

Excess (deficiency of cash available over disbursements)

Financing:

Borrowings

Repayments

Interest

Total Financing

Ending Cash Balance