Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Garden Depot is a retailer that provided the following budgeted cash flows for next year: table [ [ , 1 st Quarter, 2 nd

Garden Depot is a retailer that provided the following budgeted cash flows for next year:
\table[[,1st Quarter,2nd Quarter,3rd Quarter,4th Quarter],[Total cash receipts,$280,000,$430,000,$310,000,$330,000],[Total cash disbursements,$330,000,$300,000,$290,000,$310,000]]
The company's beginning cash balance for next year will be $40,000. The company requires a minimum cash balance of $10,000 and may borrow money at the beginning of any quarter and may repay any part of its loans at the end of any quarter. Interest payments, based on a quarterly interest rate of 3%, are due on any principal at the time it is repaid. For simplicity, assume interest is not compounded.
Required:
Prepare the company's cash budget for next year.
Note: Repayments, interest, and cash deficiencies should be indicated by a minus sign.
\table[[Garden Depot],[Cash Budget],[,1st Quarter,2nd Quarter,3rd Quarter,4th Quarter,Year],[Beginning cash balance],[Total cash receipts],[Total cash available,0,0,0,0,],[Total cash disbursements],[Excess (deficiency) of cash available over disbursements,0,0,0,0,],[Financing:],[Borrowings],[Repayments],[Interest],[Total financing,0,0,0,0,],[Ending cash balance,$,$,$,0,]]Garden Depot is a retailer that provided the following budgeted cash flows for next year:
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
Total cash receipts $ 280,000 $ 430,000 $ 310,000 $ 330,000
Total cash disbursements $ 330,000 $ 300,000 $ 290,000 $ 310,000
The companys beginning cash balance for next year will be $40,000. 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 companys cash budget for next year.
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Essentials of Accounting for Governmental and Not-for-Profit Organizations

Authors: Paul A. Copley

10th Edition

007352705X, 978-0073527055

More Books

Students also viewed these Accounting questions

Question

1.Which are projected Teaching aids in advance learning system?

Answered: 1 week ago

Question

What are the classifications of Bank?

Answered: 1 week ago

Question

=+ d. What happens to Oceanias trade balance?

Answered: 1 week ago

Question

=+ e. What happens to Oceanias real exchange rate?

Answered: 1 week ago