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:
tablest Quarter,nd Quarter,rd Quarter,th QuarterTotal cash receipts,$$$$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:
st Quarter nd Quarter rd Quarter th Quarter
Total cash receipts $ $ $ $
Total cash disbursements $ $ $ $
The companys beginning cash balance for the upcoming fiscal year will be $ The company requires a minimum cash balance of $ and may borrow any amount needed from a local bank at a quarterly interest rate of 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.
