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Let's analyze the given cash budget for Garden Depot based on the tables provided:

### Step-by-Step Breakdown:

1. **Starting Cash Balance:**
   - 1st Quarter: $20,000 (given in problem statement).
   - 2nd Quarter: $10,000 (carried over from ending balance of 1st Quarter).

2. **Cash Receipts:**
   These represent the inflows of cash during each quarter:
   - 1st Quarter: $180,000
   - 2nd Quarter: $330,000
   - 3rd Quarter: $210,000
   - 4th Quarter: $230,000

3. **Total Cash Available:**
   This is the sum of the beginning cash balance and total cash receipts:
   - 1st Quarter: $200,000
   - 2nd Quarter: $340,000
   - 3rd Quarter: $210,000
   - 4th Quarter: $230,000

4. **Cash Disbursements:**
   These are the outflows of cash for each quarter:
   - 1st Quarter: $260,000
   - 2nd Quarter: $230,000
   - 3rd Quarter: $220,000
   - 4th Quarter: $240,000

5. **Excess (Deficiency) of Cash Available:**
   This is calculated as total cash available minus total cash disbursements:
   - 1st Quarter: $200,000 - $260,000 = **-60,000** (deficiency).
   - 2nd Quarter: $340,000 - $230,000 = **$110,000** (excess).
   - 3rd Quarter: $210,000 - $220,000 = **-10,000** (deficiency).
   - 4th Quarter: $230,000 - $240,000 = **-10,000** (deficiency).

6. **Financing:**
   Since the company needs to maintain a minimum balance of $10,000, it will need to borrow in the 1st Quarter:
   - **1st Quarter Borrowing**: $70,000 to cover the $60,000 deficit and maintain a $10,000 balance.
   - In the 2nd, 3rd, and 4th quarters, no borrowings are necessary as the cash is sufficient.

7. **Ending Cash Balance:**
   After accounting for borrowings and disbursements:
   - 1st Quarter: $10,000 (maintained due to the loan).
   - 2nd Quarter: $110,000 (since there’s no need for further borrowing).
   - 3rd Quarter: $10,000 (deficiency covered by the balance).
   - 4th Quarter: $10,000 (minimum balance maintained).

### Final Overview:
The company borrows $70,000 in the 1st quarter to maintain the minimum balance, and no additional borrowings are needed in the other quarters.

Would you like further details on specific parts, or should I assist with any clarifications?

Here are 5 questions to deepen understanding:

1. How would interest payments affect the cash budget if included?
2. Why is maintaining a minimum cash balance important for budgeting?
3. What impact would delaying borrowings to a later quarter have on the budget?
4. How could Garden Depot improve its cash flow to avoid borrowing?
5. What are alternative methods to manage cash shortfalls without borrowing?

**Tip:** Always ensure to project realistic disbursements and receipts to minimize the need for financing.

Garden Depot is a retailer that provided the following budgeted cash flows for next year: Total cash receipts and total cash disbursements for each quarter. The company’s beginning cash balance for next year will be $20,000, and it requires a minimum cash balance of $10,000. The company may borrow money at the beginning of any quarter and may repay any part of its loans at the end of any quarter. Prepare the company’s cash budget for next year.

Learn how to prepare a cash budget for Garden Depot, including cash flow analysis, budgeting, and financial planning. The exercise covers key concepts such as total cash available, cash disbursements, and the need for financing to maintain minimum cash balances. Suitable for college-level students.

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