Problem 14-20A (Algo) Preparing a cash budget LO 14-5 Munoz Medical Clinic has budgeted the...
60.1K
Verified Solution
Link Copied!
Question
Accounting
Problem 14-20A (Algo) Preparing a cash budget LO 14-5
Munoz 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
Munoz 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. Munoz 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 years 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.)
Prepare a cash budget. (Round intermediate and final answers to the nearest whole dollar amounts. Any repayments should be indicated with a minus sign.)
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!
Prepare a cash budget. (Round intermediate and final answers to the nearest whole dollar amounts. Any repayments should be indicated with a minus sign.)
