Zachary Medical Clinic has budgeted the following cash flows. January February March $119,000 $125,000 $145,000...
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Zachary Medical Clinic has budgeted the following cash flows. January February March $119,000 $125,000 $145,000 Cash receipts Cash payments For inventory purchases For S&A expenses 99,500 40,500 81,500 41,500 94,500 36,500 Zachary Medical had a cash balance of $17,500 on January 1. The company desires to maintain a cash cushion of $6,000. 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. Zachary 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 year's quarterly results. Required Prepare a cash budget. (Round intermediate and final answers to the nearest whole dollar amounts. Any repayments/shortage should be indicated with a minus sign.) January February Cash Budget Section 1: Cash Receipts March 0 $ 0 0 0 0 Total cash available Section 2: Cash Payments 0 0 0 Total budgeted disbursements Section 3: Financing Activities 0 0 $ 0 $ 0 $ 0
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