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 $310,000 $365,000 2nd Quarter $430,000 $335,000 3rd Quarter $360,000 $325,000 4th Quarter $380,000 $345,000 Total cash receipts Total cash disbursements The company's beginning cash balance for the upcoming fiscal year will be $25,000. 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: Complete the following table about the company's cash budget for the upcoming fiscal year.
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 $310,000 $365,000 2nd Quarter $430,000 $335,000 3rd Quarter $360,000 $325,000 4th Quarter $380,000 $345,000 Total cash receipts Total cash disbursements The company's beginning cash balance for the upcoming fiscal year will be $25,000. 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: Complete the following table about the company's cash budget for the upcoming fiscal year.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text: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
$310,000
$365,000
2nd Quarter
$430,000
$335,000
3rd Quarter
$360,000
$325,000
4th Quarter
$380,000
$345,000
Total cash receipts
Total cash disbursements
The company's beginning cash balance for the upcoming fiscal year will be $25,000. 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:
Complete the following table about the company's cash budget for the upcoming fiscal year.
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