ces 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 $ 270,000 $ 420,000 $ 323,000 $ 293,000 $ 300,000 $ 283,000 4th Quarter $ 320,000 $ 303,000 The company's beginning cash balance for next year will be $38,000. 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 0 0 0 0 0 0 0 0 0 0 0 $ 0 $ 0 $ 0 $ 0
ces 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 $ 270,000 $ 420,000 $ 323,000 $ 293,000 $ 300,000 $ 283,000 4th Quarter $ 320,000 $ 303,000 The company's beginning cash balance for next year will be $38,000. 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 0 0 0 0 0 0 0 0 0 0 0 $ 0 $ 0 $ 0 $ 0
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 10CE: Coral Seas Jewelry Company makes and sells costume jewelry. For the coming year, Coral Seas expects...
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![ces
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
$ 270,000 $ 420,000
$ 323,000 $ 293,000
$ 300,000
$ 283,000
4th Quarter
$ 320,000
$ 303,000
The company's beginning cash balance for next year will be $38,000. 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
0
0
0
0
0
0
0
0
0
0
0
$
0
$
0
$
0
$
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0ea4eca7-b1ad-4d6a-b007-b667e189e4aa%2Fd57f7f63-331c-4b66-8a91-d4a4aa5919b1%2Frxhp85u_processed.jpeg&w=3840&q=75)
Transcribed Image Text:ces
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
$ 270,000 $ 420,000
$ 323,000 $ 293,000
$ 300,000
$ 283,000
4th Quarter
$ 320,000
$ 303,000
The company's beginning cash balance for next year will be $38,000. 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
0
0
0
0
0
0
0
0
0
0
0
$
0
$
0
$
0
$
0
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