rr Rundle Medical Clinic has budgeted the following cash flows.January$ 112,000Cash receiptsCash paymentsFor inventory purchasesFor S&A expensesCash BudgetSection 1: Cash Receipts96,00037,000Total cash availableSection 2: Cash PaymentsRundle Medical had a cash balance of $14,000 on January 1. The company desires to maintain a cash balance of $5,000. Funds areassumed 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 had amonthly $40,000 beginning balance in its line of credit liability account from this year's quarterly results.Total budgeted disbursementsRequiredPrepare a cash budget.Note: Round intermediate and final answers to the nearest whole dollar amounts. Any repayments/shortage should be indicatedwith a minus sign.January0February$ 118,000078,00038,000$February0 $< PrevMarch$ 138,000091,00033,0000March9 of 900***Next Rundle Medical had a cash balance of $14,000 on January 1. The company desires to maintain a cash balance of $5,000. Funds areassumed to be borrowed, in increments of $1,000, and repaid on the last day of each month; the interest rate is 1 percent per monthRepayments may be made in any amount available. Rundle pays its vendors on the last day of the month also. The company had amonthly $40,000 beginning balance in its line of credit liability account from this year's quarterly results.RequiredPrepare a cash budgetNote: Round intermediate and final answers to the nearest whole dollar amounts. Any repayments/shortage should be indicatedwith a minus sign.Cash BudgetSection 1: Cash ReceiptsTotal cash availableSection 2: Cash PaymentsTotal budgeted disbursementsSection 3: Financing Activities$January000February$0 $0 $0000 $March00000Check

>Cash Budget is prepared as part of budgeting process.>It is usually the final budget before…

Rundle Medical Clinic has budgeted the following cash flows. January $ 112,000 Cash receipts Cash payments For inventory purchases For SSA expenses 96,000 37,000 February $ 118,000 78,000 38,000 March $ 138,000 91,000 33,000 Rundle Medical had a cash balance of $14,000 on January 1. The company desires to maintain a cash balance 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 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. Note: Round intermediate and final answers to the nearest whole dollar amounts. Any repayments/shortage should be indicated with a minus sign.

Rundle Medical Clinic has budgeted the following cash flows. January $ 112,000 Cash receipts Cash payments For inventory purchases For SSA expenses 96,000 37,000 February $ 118,000 78,000 38,000 March $ 138,000 91,000 33,000 Rundle Medical had a cash balance of $14,000 on January 1. The company desires to maintain a cash balance 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 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. Note: Round intermediate and final answers to the nearest whole dollar amounts. Any repayments/shortage should be indicated with a minus sign.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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