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Problem 1 Garden Depot is a retailer that is preparing its budget for the upcoming...

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Accounting

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Problem 1 Garden Depot is a retailer that is preparing its budget for the upcoming fiscal year. Management has grepared the following summary of its budgeted cash flows: The compary's beginning eash balance for the upcoming fiscal year will be $20,000. The company requires a minimum eash balance of $10,000 and may borrow any amount needed from a local bank at an annual interest rate of 12%. 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 amy principal at the time it is repaid. Garden intends to make payments to retire loans whenever cash is available. 1. Prepare the company's cash budget for the upcoming fiscal year. 2. How does the fourth quarter ending cash balance change if interest on borrowing is accrued until the end of the fourth quarter and total borrowings and interest are paid in full at that time

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