FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Required
Prepare a cash budget. (Any repayments/shortage should be indicated with a minus
sign. Round your answers to the nearest whole dollar amount.)
Cash Budget
January
February
March
0 $
Cash available
Less: Cash payments
Total budgeted payments
Payments minus receipts
Financing Activity
%24
%24
%24
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Transcribed Image Text:Required Prepare a cash budget. (Any repayments/shortage should be indicated with a minus sign. Round your answers to the nearest whole dollar amount.) Cash Budget January February March 0 $ Cash available Less: Cash payments Total budgeted payments Payments minus receipts Financing Activity %24 %24 %24
Newman Medical Clinic has budgeted the following cash flows.
January February March
$11,000 $117,000 $137,000
Cash receipts
Cash payments
For inventory
purchases
For S&A expenses 36,500
95,500
77,500 90,500
37,500
32,500
Newman Medical had a cash balance of $13,500 on January 1. The company desires
to maintain a cash cushion of $10,000. Funds are assumed to be borrowed, in
increments of $1,000, and repaid on the last day of each month; the interest rate is 3
percent per month. Repayments may be made in any amount available. Newman 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. (Any repayments/shortage should be indicated with a minus
sign. Round your answers to the nearest whole dollar amount.)
expand button
Transcribed Image Text:Newman Medical Clinic has budgeted the following cash flows. January February March $11,000 $117,000 $137,000 Cash receipts Cash payments For inventory purchases For S&A expenses 36,500 95,500 77,500 90,500 37,500 32,500 Newman Medical had a cash balance of $13,500 on January 1. The company desires to maintain a cash cushion of $10,000. Funds are assumed to be borrowed, in increments of $1,000, and repaid on the last day of each month; the interest rate is 3 percent per month. Repayments may be made in any amount available. Newman 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. (Any repayments/shortage should be indicated with a minus sign. Round your answers to the nearest whole dollar amount.)
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