File Edit View History Bookmarks People Window Help 40 x/? ( Free cr x D Crystal

Question

File Edit View History Bookmarks People Window Help 40 x/? ( Free cr x D Crystal x e e Fundamx S connec ecure https://newconnect.mheducation.com/flow/connect.html Connec >X Fundar × Fundan × G. connec × Check my work mode : This shows what is correct or Incorrect for the work you have completed so far. It does not Indicate comp Walton Medical Clinic has budgeted the following cash flows: January February Mareh Cash receipts Cash payments $118,000 $124,000 $144,000 For inventory purchases 99,000 81,000 94,000 40,000 41.000 6,000 For SiA expenses Walton Medical had a cash balance of $17,000 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. Walton pays its vendors on the last day of the month also. The company had a monthly $40,000 beginning balance in its line of credit liablity account from this years quarterly resuits. Required Prepare a cash budget. (Round intermediate and final answers to the nearest whole dollar amounts. Any repayments/shortage should be indicated with a minus sign. 3 Answer is not complete. s 17.000$ (4400) $ (2,760) Beginning cash balance Add: Cash receipts Cash available Less: Cash payments 124, 119,600 144, 141,240 135,000 00081 40.0004100036.000 94 For S&A; expenses Interest expense per month 36003 139,400 122,360 130,000 Total budgeted payments Payments minus receipts (4,400) (2,760) 11,240 Surplus (shortage) Financing Activity Ending cash balance $ (4,400) (2,760) 11,240

Explanation / Answer

Cash Budget Jan Feb Mar Beginning cash balance          17,000            5,000              5,000 Add: Cash receipts       118,000       124,000          144,000 Cash available       135,000       129,000          149,000 Less: Cash Payments For inventory purchases          99,000          81,000            94,000 For S&A expenses          40,000          41,000            36,000 Interest expenses per month                400                494                  479 (40000*1%) (49400*1%) (47894*1%) Total budgeted payments       139,400       122,494          130,479 Payments minus Receipts Surplus/(Shortage)          (4,400)            6,506            18,521 Financing activity Borrowing/(repayment)            9,400          (1,506)          (13,521) Minimum balance            5,000            5,000              5,000

Related Questions

Navigate

• Browse (All)
• Browse F
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.