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 $ $ $
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
![Baird Medical Clinic has budgeted the following cash flows.
February
$108,000
January
March
Cash receipts
Cash payments
For inventory purchases
For S&A expenses
$102,000
$128,000
91,000
73,000
33,000
86,000
28,000
32,000
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
$
$
Total cash available
Section 2: Cash Payments
Total budgeted disbursements
Section 3: Financing Activities
$
2$
2$](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F06b13176-f1c7-4f2c-8e34-914e2de9d27f%2Fd8988745-8946-41e6-89e1-03f276a86390%2Fomn6fd8_processed.png&w=3840&q=75)
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