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It seems you've uploaded two images related to a cash budget exercise for a company named Garden Depot. Here's a breakdown of how to approach the cash budget problem:

### Steps to Prepare a Cash Budget:

1. **Determine the Beginning Cash Balance**: The company starts with $20,000. This balance is carried forward and updated after each quarter.
   
2. **List Total Cash Receipts for Each Quarter**: These are given for all four quarters:
   - Q1: $180,000
   - Q2: $330,000
   - Q3: $210,000
   - Q4: $230,000

3. **List Total Cash Disbursements**: Cash payments each quarter:
   - Q1: $260,000
   - Q2: $230,000
   - Q3: $220,000
   - Q4: $240,000

4. **Calculate Total Cash Available**: Add the beginning cash balance to the cash receipts for each quarter.
   
5. **Calculate Excess (Deficiency) of Cash Available Over Disbursements**: Subtract total disbursements from the total cash available to see if there is a surplus or shortage of cash for each quarter.

6. **Financing Needs**: If there is a cash deficiency, the company will need to borrow to maintain a minimum balance of $10,000. If there is excess cash, it can be used to pay down borrowings or carry over to the next period.

### Image Explanation:
In the second image (cash budget table), the steps above are followed. Here's a quick summary:

- **Q1 Deficiency**: After accounting for disbursements, there is a cash deficiency of $60,000 in Q1. Therefore, the company borrows $70,000 to ensure a $10,000 ending cash balance.
- **Subsequent Quarters**: In later quarters, the cash balance increases substantially due to excess cash availability after disbursements.

### Summary Table for All Quarters:
| **Quarter**         | **Receipts** | **Disbursements** | **Cash Available** | **Borrowings** | **Ending Balance** |
|---------------------|--------------|-------------------|--------------------|----------------|--------------------|
| **1st Quarter (Q1)** | $180,000     | $260,000          | $200,000           | $70,000        | $10,000            |
| **2nd Quarter (Q2)** | $330,000     | $230,000          | $340,000           | $0             | $110,000           |
| **3rd Quarter (Q3)** | $210,000     | $220,000          | $487,900           | $0             | $267,900           |
| **4th Quarter (Q4)** | $230,000     | $240,000          | $402,100           | $0             | $162,100           |

The final cash budget shows a substantial positive cash balance by the end of the year due to strong cash inflows in quarters 2 and 3.

### Questions for Further Analysis:
1. What would happen if interest on borrowings was included in the calculations?
2. How would a reduction in cash receipts affect the borrowing needs?
3. What strategies could the company implement to avoid borrowing in the first quarter?
4. How does the minimum cash balance requirement impact the company's financial planning?
5. What are the advantages of maintaining a positive cash balance throughout the year?

### Tip:
Always account for financing needs (borrowing and repayment) when forecasting cash budgets, especially when there is a strict minimum cash balance requirement. This ensures the company stays solvent through each period. 

Let me know if you need further clarifications!

Prepare the company’s cash budget for next year, taking into account receipts, disbursements, minimum cash balance requirements, and any necessary borrowings.

Learn how to prepare a cash budget for Garden Depot, including calculating cash receipts, disbursements, excess cash, and borrowing requirements. Detailed step-by-step analysis for finance and accounting students.

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