Newman Medical Clinic has budgeted the following cash flows. January February March Cash receipts $...
70.2K
Verified Solution
Link Copied!
Question
Accounting
Newman Medical Clinic has budgeted the following cash flows. January February March Cash receipts $ 110,000 $ 116,000 $ 136,000 Cash payments For inventory purchases 95,000 77,000 90,000 For S&A expenses 36,000 37,000 32,000 Newman Medical had a cash balance of $13,000 on January 1. The company desires to maintain a cash cushion of $9,000. Funds are assumed to be borrowed, in increments of $1,000, and repaid on the last day of each month; the interest rate is 2 percent per month. Repayments may be made in any amount available. Newman pays its vendors on the last day of the month also. The company had a monthly $40,000 beginning balance in its line of credit liability account from this years quarterly results. Required Prepare a cash budget. (Any repayments/shortage should be indicated with a minus sign. Round your answers to the nearest whole dollar amount.)
Cash Budget
January
February
March
Cash available
Less: Cash payments
Total budgeted payments
Payments minus receipts
Financing Activity
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
