Check my work Garden Depot is a retailer that is preparing its budget for the up

Question

Check my work 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: Total cash receipts Total cash disbarsements t Quarter 2nd Quarter 3rd Quarter 4th Quarter 290, 000 $440,000$320,000 $ 340,000 337,000 307,000297,000 $317,000 The company's beginning cash balance for the upcoming fiscal year will be $42,000. 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 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 Beginning cash balance Total cash receipts Total cash available 888a 8 0

Explanation / Answer

CASH BUDGET QUARTER1 QUARTER2 QUARTER3 QUARTER4 TOTAL beginning Cash balance 42000 10000 127100 150100 42000 Total cash receipts 290000 440000 320000 340000 1390000 Total Cash Available 332000 450000 447100 490100 1432000 Total Cash disbursement 337000 307000 297000 317000 1258000 Excess of cash available over disb. -5000 143000 150100 173100 174000 Financing: Borrowings 15000 0 0 15000 Repayments -15000 0 0 -15000 Interest -900 0 0 -900 Total Financing 15000 0 0 0 0 Ending Cash Balance 10000 127100 150100 173100 173100

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