Baird Medical Clinic has budgeted the following cash flows. February $108,000 March January $102,000 Cash receipts Cash payments For inventory purchases $128,000 91,000 32,000 73,000 33,000 86,000 28,000 For S&A expenses Baird Medical had a cash balance of $9,000 on January 1. The company desires to maintain a cash cushion of $7,000. 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. Baird 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. ) Cash Budget January February March Section 1: Cash Receipts $ O $ Total cash available Section 2: Cash Payments Total budgeted disbursements Section 3: Financing Activities $ $ $

Baird Medical Clinic has budgeted the following cash flows. February $108,000 March January $102,000 Cash receipts Cash payments For inventory purchases $128,000 91,000 32,000 73,000 33,000 86,000 28,000 For S&A expenses Baird Medical had a cash balance of $9,000 on January 1. The company desires to maintain a cash cushion of $7,000. 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. Baird 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. ) Cash Budget January February March Section 1: Cash Receipts $ O $ Total cash available Section 2: Cash Payments Total budgeted disbursements Section 3: Financing Activities $ $ $

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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