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Item7 1points eBookHint Print References Check my workCheck My Work button is now enabled Item 7 Garden Depot is a retailer that is preparing its
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Item 7
Garden Depot is a retailer that is preparing its budget for the upcoming fiscal year. Management has prepared the following summary of its budgeted cash flows:
| 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | |||||
| Total cash receipts | $ | 280,000 | $ | 400,000 | $ | 330,000 | $ | 350,000 |
| Total cash disbursements | $ | 344,000 | $ | 314,000 | $ | 304,000 | $ | 324,000 |
The companys beginning cash balance for the upcoming fiscal year will be $45,000. The company requires a minimum cash balance of $10,000 and may borrow any amount needed from a local bank at a quarterly interest rate of 3%. The company may borrow any amount 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. For simplicity, assume that interest is not compounded.
Required:
Prepare the companys cash budget for the upcoming fiscal year. (Repayments, and interest, should be indicated by a minus sign.)
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The Next Step Advanced Medical Coding And Auditing 2013
Authors: Carol J. Buck MS CPC CCS-P
1st Edition
1455744859, 978-1455744855
