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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
Garden Depot is a retailer that provided the following budgeted cash flows for next year:
st Quarter nd Quarter rd Quarter th Quarter
Total cash receipts $ $ $ $
Total cash disbursements $ $ $ $
The companys beginning cash balance for next year will be $ The company requires a minimum cash balance of $ 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 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.
Note: Repayments, interest, and cash deficiencies should be indicated by a minus sign.Prepare the company's cash budget for next year.
Note: Repayments, interest, and cash deficiencies should be indicated by a minus sign.
tableGarden DepotCash Budgetst Quarter,nd Quarter,rd Quarter,th Quarter,YearBeginning cash balance,$$Total cash receipts,,Total cash available,,Total cash disbursements,,Excess deficiency of cash available over disbursements,,Financing:BorrowingsRepaymentsInterestTotal financing,,Ending cash balance,$$$$
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