Assume you are a producer who is preparing a quarterly cash flow budget for the upcoming year. You expect to begin the year with $60,000 of current debt. Based on your cash flow projections, you do not expect to make any payment on current debt during quarter 1; however, you anticipate having cash available of $13,000 in quarter 2. You must maintain a minimum cash balance of $5,000 at the end of each quarter. Assume the interest rate on your current debt is 8% annually and interest accrues only on the outstanding current debt balance (ie. interest does not compound on itself).
How much will you be able to pay toward current interest at the end of quarter 2?
a. |
$2,400 |
|
b. |
$4,800 |
|
c. |
$9,600 |
|
d. |
You will not be able to pay back on any of your current interest at the end of quarter 2. |
Assume you are a producer who is preparing a quarterly cash flow budget for the upcoming year. Yo...
Assume you are a producer who is preparing a quarterly cash flow budget for the upcoming year. You expect to begin the year with $60,000 of current debt. Based on your cash flow projections, you do not expect to make any payment on current debt during quarter 1; however, you anticipate having cash available of $13,000 in quarter 2. You must maintain a minimum cash balance of $5,000 at the end of each quarter. Assume the interest rate on your...
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 $ 340,000 $ 460,000 $ 390,000 $ 410,000 Total cash disbursements $ 386,000 $ 356,000 $ 346,000 $ 366,000 The company’s beginning cash balance for the upcoming fiscal year will be $24,000. The company requires a minimum cash balance of $10,000 and may...
7. 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 $ 200,000 $ 350,000 $ 230,000 $ 250,000 Total cash disbursements $ 274,000 $ 244,000 $ 234,000 $ 254,000 The company’s beginning cash balance for the upcoming fiscal year will be $24,000. The company requires a minimum cash balance of $10,000 and...
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 $ 350,000 $ 470,000 $ 400,000 $ 420,000 Total cash disbursements $ 393,000 $ 363,000 $ 353,000 $ 373,000 The company’s beginning cash balance for the upcoming fiscal year will be $20,000. The company requires a minimum cash balance of $10,000 and may...
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 disbursementa 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter $ 200,000 $ 350,000 $ 230,000 $250,000 $ 274,000 $244,000 $234,000 $ 254,000 The company's beginning cash balance for the upcoming fiscal year will be $24,000. The company requires a minimum cash balance of $10,000 and may borrow any amount...
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 $290,000 337,000 $ 340,000 $ 317,000 $ 440,000 $ 307,000 $ 320,000 $ 297,000 Total cash receipts Total cash disbursements 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...
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 disbursements 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter $ 250,000 $ 400,000 $ 280,000 $300,000 $ 309,000 $ 279,000 $ 269,000 $289,000 The company's beginning cash balance for the upcoming fiscal year will be $34,000. The company requires a minimum cash balance of $10,000 and may borrow any...
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 disbursements 1st Quarter 2nd Quarter 3rd Quarter $ 220,000 $ 370,000 $ 250,000 $ 288,000 $ 258,000 $ 248,000 4th Quarter $ 270,000 $ 268,000 The company's beginning cash balance for the upcoming fiscal year will be $28,000. The company requires a minimum cash balance of $10,000 and may...
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 disbursements 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter $ 200,000 $ 350,000 $ 230,000 $ 250,000 $ 274,000 $ 244,000 $ 234,000 $ 254,000 The company's beginning cash balance for the upcoming fiscal year will be $24,000. The company requires a minimum cash balance of $10,000 and may...
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 $ 330,000 $ 450,000 $ 380,000 $ 400,000 Total cash disbursements $ 379,000 $ 349,000 $ 339,000 $ 359,000 The company’s beginning cash balance for the upcoming fiscal year will be $22,000. The company requires a minimum cash balance of $10,000 and may...