Garden Depot is a retaller that is preparing its budget for the upcoming fiscal

Question

Garden Depot is a retaller that is preparing its budget for the upcoming fiscal year. Management has prepared the following summary of Its budgeted cash flows: Total cash receipts Total cash disbursements $ 33e,8e8 $ 379,8e8 45e,8ee 388,8e8 486,888 349,8ee 339,8e8 359,888 The company's beginning cash balance for the upcoming fiscal year will be $22,000. The company requlres 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 Requlrec Prepare the company's cash budget for the upcoming fiscal year. (Repayments, and Interest, should be Indicated by a minus sign.) Garden Depot Cash Budget 1st Quarter 2nd Quarter 3rd Quarter 4th QuarterYear Beginning cash balance Total cash receipts Total cash available Total cash disbursements Excess of cash available over disbursements Financing Borrowings Repayments Interest Total financing Ending cash balance

Explanation / Answer

CASH BUDGETS Q-1 Q-2 Q-3 Q-4 YEAR Beginning Cash balance 22000 10000 71780 112780 22000 Total Cash receipts 330000 450000 380000 400000 1560000 Total Cash available 352000 460000 451780 512780 1582000 Total Cash disbursement 379000 349000 339000 359000 1426000 Excess of Cash available over disb. -27000 111000 112780 153780 156000 Financing: Borrowings 37000 0 0 37000 Repayment -37000 0 0 -37000 Interest -2220 0 -2220 Total Financing 37000 0 0 0 0 Ending Cash Balance 10000 71780 112780 153780 153780

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