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 $ 310,000 $365,008 Beginning cash balance Total cash receipts Total cash available 2nd Quarter 3rd Quarter $ 438,088 $360,000 $ 335,000 $325,000 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: Prepare the company's cash budget for the upcoming fiscal year Note: Repayments and interest should be indicated by a minus sign. Total cash disbursements Excess (deficiency) of cash available over disbursements Financing Garden Depot Cash Budget 1st Quarter 0 4th Quarter $ 380,000 $ 345,000 D 2nd Quarter 0 0 3rd Quarter 0 0 4th Quarter 0 0 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: Total cash receipts Total cash disbursements 1st Quarter $ 310,000 $365,008 Beginning cash balance Total cash receipts Total cash available 2nd Quarter 3rd Quarter $ 438,088 $360,000 $ 335,000 $325,000 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: Prepare the company's cash budget for the upcoming fiscal year Note: Repayments and interest should be indicated by a minus sign. Total cash disbursements Excess (deficiency) of cash available over disbursements Financing Garden Depot Cash Budget 1st Quarter 0 4th Quarter $ 380,000 $ 345,000 D 2nd Quarter 0 0 3rd Quarter 0 0 4th Quarter 0 0 Year

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter4: Financial Planning And Forecasting

Section: Chapter Questions

Problem 4P

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