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Exercise 7-7 Cash Budget [LO7-8] Garden Depot is a retailer that is prepared the following summary of i preparing its budget for the upcoming fiscal year. Management has ts budgeted cash flows Total cash receipts Total cash disbursements 1st Quarter $200,000 $274,000 2nd Quarter $350,000 $244,000 3rd Quarter $230,000 $234,000 4th Quarter $250,000 $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 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 Complete the company's cash budget for the upcoming fiscal year. (Cash deficiencies, disbursements, repayments, and interest should be indicated by a minus sign.) Garden Depot Cash Budget 1st Quarter 2nd Quarter 3rd Quarter 4th QuarterYear Beginning cash balance Total cash receipts Total cash available Less total cash disbursements Excess of cash available over disbursem Financing $24,000 200,000 224,000 274,000 (50,000) 350,000 350,000 244,000 06,000 (4,000)(4,000)24,000 230,000 230,000 234,000 250,000 1,030,000 250,000 1,030,000 254,000 1,006,000 Borrowings Repayments Interest Total financing Ending cash balance $(50,000) 106,000$ (4,000) (4,000) 24,000

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