Question

Garden Depot Is a retaller 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 190,eee $ 267,eee Total cash receipts $ 340,eee $ 237,ee0 $ 240,0ee $ 247,00e 220,00e $ 227,eee Total cash disbursements 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 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 Total financing Ending cash balance

Answer 1

1. 
   Solution -__ ------------------ Compony's Cash Budget fou the upcoming-fiscal year Craeden Depot - Cash_Budget (Amorint in D) Paveliculaue a | 02 | 03 | 04 Year Beginning Cast balance 22000 10,000 44,100 37,100 113,200 | Idlel Yash_Receipke 190,000 340,000 220,000 240.000 990.000 -Toled Cashovailable_212,000/350,000 264,100 277,100 103,200 Jolieel Cosb diebwisement 267,000 237,000 227,000247,000 9788001 - Excess of Cash available -55,000 !13,000 37,100 30,100 125,200 _Quer'disbursement Financing: Baculouring Repayments Interst Total financing 65.000 - 65,000 - 3900 65,000 - 68,900 65,000 - 65000 - 3900 - 3900 Ending cash balance 10,000 44,100 37,100 30,100 121300 Notes. _Interest is paid at the time of depayment, so clue fox 2 quarter Interest =__$65006_x_3.X 2 quarters __$_390.00
   

Answer 2

In the above answer everything is right except the year column. add 113,200 and 990,000 (1,012,000). Then subtract 1,012,000 and 978000 (34,000)

Answer 3