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Cal cash receipts 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter $ 420,000 $ 300,000 $ 320,000 $ 293,000 $ 283,000 $ 303,000 Cal cash disbursements $ 270,000 $ 323,000 company's beginning cash balance for the upcoming fiscal year will be $38,000. The company requir 0,000 and may borrow any amount needed from a local bank at a quarterly interest rate of 3%. The c unt at the beginning of any quarter and may repay its loans, or any part of its loans, at the end of any lue on any principal at the time it is repaid. For simplicity, assume that interest is not compounded. ired:

Cal cash receipts 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter $ 420,000 $ 300,000 $ 320,000 $ 293,000 $ 283,000 $ 303,000 Cal cash disbursements $ 270,000 $ 323,000 company's beginning cash balance for the upcoming fiscal year will be $38,000. The company requir 0,000 and may borrow any amount needed from a local bank at a quarterly interest rate of 3%. The c unt at the beginning of any quarter and may repay its loans, or any part of its loans, at the end of any lue on any principal at the time it is repaid. For simplicity, assume that interest is not compounded. ired:

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter8: Budgeting
Section: Chapter Questions
Problem 19E: Schedule of cash payments for service company Horizon Financial Inc. was organized on February 28....
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Urmila ben 

1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total cash receipts $ 270,000 $ 420,000 $ 300,000 Total cash disbursements $ 323,000 $ 293,000 $ 283,000 $ 320,000 $ 303,000 The company's beginning cash balance for the upcoming fiscal year will be $38,000. 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 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 Quarter Year Beginning cash balance Total cash receipts Total cash available Total cash disbursements Excess of cash available over disbursements Financing: Borrowings Repayments Interest 0 0 0 0 0 0 0 0 Total financing 0 0 0 0 Ending cash balance $ 0 $ 0 $ 0 $ 0
Transcribed Image Text:1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total cash receipts $ 270,000 $ 420,000 $ 300,000 Total cash disbursements $ 323,000 $ 293,000 $ 283,000 $ 320,000 $ 303,000 The company's beginning cash balance for the upcoming fiscal year will be $38,000. 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 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 Quarter Year Beginning cash balance Total cash receipts Total cash available Total cash disbursements Excess of cash available over disbursements Financing: Borrowings Repayments Interest 0 0 0 0 0 0 0 0 Total financing 0 0 0 0 Ending cash balance $ 0 $ 0 $ 0 $ 0
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