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 $360,000 $ 480,000 $ 410,000 $430,000 Total cash disbursements $ 400,000 $ 370,000 $360,000 $380,000 The company's beginning cash balance for the upcoming fiscal year will be $18,000. 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, interest, and cash deficiencies should be indicated by a minus sign.)
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 $360,000 $ 480,000 $ 410,000 $430,000 Total cash disbursements $ 400,000 $ 370,000 $360,000 $380,000 The company's beginning cash balance for the upcoming fiscal year will be $18,000. 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, interest, and cash deficiencies should be indicated by a minus sign.)
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 6PA: Budgeted income statement and balance sheet As a preliminary to requesting budget estimates of...
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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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 $ 360,000 $ 480,000 $ 410,000 $430,000
Total cash disbursements $ 400,000 $ 370,000 $360,000 $380,000 The company's beginning
cash balance for the upcoming fiscal year will be $18,000. 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, interest, and
cash deficiencies should be indicated by a minus sign.)
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