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Exercise 9-7: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year

This document presents Garden Depot's cash budget for four quarters and the full year. It shows the beginning and ending cash balances for each period, as well as cash receipts, available cash, disbursements, and financing activities including borrowing and interest payments. The cash budget helps Garden Depot plan for periods where cash needs exceed available funds and determine financing requirements.

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33 views1 page

Exercise 9-7: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year

This document presents Garden Depot's cash budget for four quarters and the full year. It shows the beginning and ending cash balances for each period, as well as cash receipts, available cash, disbursements, and financing activities including borrowing and interest payments. The cash budget helps Garden Depot plan for periods where cash needs exceed available funds and determine financing requirements.

Uploaded by

NøthîñgLîfè
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Exercise 9-7 (15 minutes)

Garden Depot
Cash Budget
1st 2nd 3rd 4th
Quarter Quarter Quarter Quarter Year
Cash balance,
beginning ................. $ 20,000 $ 10,000 $ 35,800 $ 25,800 $ 20,000
Total cash receipts ....... 180,000 330,000 210,000 230,000 950,000
Total cash available...... 200,000 340,000 245,800 255,800 970,000
Less total cash
disbursements........... 260,000 230,000 220,000 240,000 950,000
Excess (deficiency) of
cash available over
disbursements........... (60,000) 110,000 25,800 15,800 20,000
Financing:
Borrowings (at
beginnings of
quarters)* .............. 70,000 70,000
Repayments (at ends
of quarters) ............ (70,000) (70,000)
Interest§ ................... (4,200) (4,200)
Total financing............. 70,000 (74,200) (4,200)
Cash balance, ending ... $ 10,000 $ 35,800 $ 25,800 $ 15,800 $ 15,800
* Since the deficiency of cash available over disbursements is $60,000,
the company must borrow $70,000 to maintain the desired ending cash
balance of $10,000.
§
$70,000 × 3% × 2 = $4,200.

© The McGraw-Hill Companies, Inc., 2010. All rights reserved.


Solutions Manual, Chapter 9 451

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