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Problem 14-20A (Algo) Preparing a cash budget LO 14-5 Finch Medical Clinic has budgeted the following cash flows. January February March Cash receipts $ 106,000 $112,000 $132,000 Cash payments For Inventory purchanes 93,000 75,000 88,000 Tor SL expenses 34,000 35,000 30,000 Finch Medical had a cash balance of $11,000 on January 1. The company desires to maintain a cash cushion of $5,000. Funds are assumed to be borrowed, in increments of $1,000, and repaid on the last day of each month; the interest rate is 1 percent per month, Repayments may be made in any amount available. Finch 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 last year's quarterly results. Required Prepare a cash budget. (Round intermediate and final answers to the nearest whole dollar amounts. Any repayments should be indicated with a minus sign.) January February March $ 0 $ 0 Cash Budget Section 1: Cash Receipts Beginning cash balance Add: Cash receipts Total cash available Section 2: Cash Payments For inventory purchases For S&A expenses Interest expense per month 0 0 0 0 Total budgeted disbursements Section 3: Financing Activities Interest expense per month 0 0 $ 0 $ 0 $ 0

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