Secare https ule 14 Homework 4 Rundie Medical Clinic has budgeted the folilowing

Question

Secare https ule 14 Homework 4 Rundie Medical Clinic has budgeted the folilowing cash flows 112,000 %118,000 $138,000 Cash receipts Cash paysents 96,06078,000 91,e 7,60038,009 33,90 nventory purchases For Sãa expenses Rundle Medical had a cash balance of $14,000 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 Rundle pays its vendors on the last day of the month also. The company hada monthly $40000 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 eterencesshould be indicated with a minus sign.) 19.000 S Cash receipts Cash available Less Cash 126,000 237 000 259000 Total budgeted payments 116 000 124.000 (7 121.000 135,000 26 00 Pre 4f4 Ne enovO

Explanation / Answer

CASH BUDGET JAN FEB MARCH beginning cashh balance 14000 5000 5000 Add: cash receipts 112000 118000 138000 Cash available 126000 123000 143000 Less: cash payments For inventory purchase 96000 78,000 91,000 For S&A expense 37000 38,000 33,000 Interest expense per month 0 120 101 Total Budgeted Payment 133000 116120 124,101 Payment minus recipts Surplus/(shortgae) -7,000 6880 18,899 Financing Borrowing /(Repayment ) 12,000 -1,880 -10,120 Ending Cash balance 5000 5000 8,779

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