Question
Garden Depot is a retailer that provided the following budgeted cash flows for next year: Total cash receipts Total cash disbursements 1st Quarter 2nd
Garden Depot is a retailer that provided the following budgeted cash flows for next year: Total cash receipts Total cash disbursements 1st Quarter 2nd Quarter 3rd Quarter $ 200,000 $ 350,000 $ 230,000 $274,000 $ 244,000 $ 234,000 4th Quarter $ 250,000 $ 254,000 The company's beginning cash balance for next year will be $24,000. 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 loans at the end of any quarter. Interest payments, based on a 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 company's cash budget for next year. Note: Repayments, interest, and cash deficiencies should be indicated by a minus sign. 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: Garden Depot Cash Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year
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