Garden Depot is a retailer that is preparing its budget for the upcoming fiscal year. Management has prepared the

Question

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 $ 230,000 $ 295,000 2nd Quarter $ 380,000 $ 265,000 3rd Quarter $ 260,000 $ 255,000 4th Quarter $ 280,000 $ 275,000 The company's beginning cash balance for the upcoming fiscal year will be $30,000. 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.) Year Garden Depot Cash Budget 1st

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Answer Requirement asked Q1 Q2 Q3 Q4 Year Beginning Cash balance $30,000 $10,000 $77,300 $82,300 $30,000 Total Cash receipts $230,000 $380,000 $260,000 $280,000 $1,150,000 Total Cash available $260,000 $390,000 $337,300 $362,300 $1,180,000 Total Cash disbursements $295,000 $265,000 $255,000 $275,000 $1,090,000 Excess (Deficiency) of cash available over disb. ($35,000) $125,000 $82,300 $87,300 $90,000 Financing: Borrowings $45,000 $0 $0 $0 $45,000 Repayments $0 ($45,000) $0 $0 ($45,000) Interest $0 ($2,700) $0 $0 ($2,700) Total Financing $45,000 ($47,700) $0 $0 ($2,700) Ending Cash balance $10,000 $77,300 $82,300 $87,300 $87,300 --Working Q1 Q2 Q3 Q4 Year Beginning Cash balance 30000 =+C15968 Total Cash receipts 230000 380000 260000 280000 =SUM(C15969:F15969) Total Cash available =+G15968+G15969 Total Cash disbursements 295000 265000 255000 275000 =SUM(C15971:F15971) Excess (Deficiency) of cash available over disb. =+G15970-G15971 Financing: Borrowings =35000+10000 0 0 0 =SUM(C15974:F15974) Repayments 0 -45000 0 0 =SUM(C15975:F15975) Interest 0 =-45000*3%*2 0 0 =SUM(C15976:F15976) Total Financing =SUM(G15974:G15976) Ending Cash balance =+G15972+G15977

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Garden Depot is a retailer that is preparing its budget for the upcoming fiscal year

Expert Solution

Archived Solution

	Q1	Q2	Q3	Q4	Year
Beginning Cash balance	$30,000	$10,000	$77,300	$82,300	$30,000
Total Cash receipts	$230,000	$380,000	$260,000	$280,000	$1,150,000
Total Cash available	$260,000	$390,000	$337,300	$362,300	$1,180,000
Total Cash disbursements	$295,000	$265,000	$255,000	$275,000	$1,090,000
Excess (Deficiency) of cash available over disb.	($35,000)	$125,000	$82,300	$87,300	$90,000
*Financing:*
Borrowings	$45,000	$0	$0	$0	$45,000
Repayments	$0	($45,000)	$0	$0	($45,000)
Interest	$0	($2,700)	$0	$0	($2,700)
Total Financing	$45,000	($47,700)	$0	$0	($2,700)
Ending Cash balance	$10,000	$77,300	$82,300	$87,300	$87,300

	Q1	Q2	Q3	Q4	Year
Beginning Cash balance	30000				=+C15968
Total Cash receipts	230000	380000	260000	280000	=SUM(C15969:F15969)
Total Cash available					=+G15968+G15969
Total Cash disbursements	295000	265000	255000	275000	=SUM(C15971:F15971)
Excess (Deficiency) of cash available over disb.					=+G15970-G15971
*Financing:*
Borrowings	=35000+10000	0	0	0	=SUM(C15974:F15974)
Repayments	0	-45000	0	0	=SUM(C15975:F15975)
Interest	0	=-450003%2	0	0	=SUM(C15976:F15976)
Total Financing					=SUM(G15974:G15976)
Ending Cash balance					=+G15972+G15977