General Accounting: Munoz Medical Clinic has budgeted the following cash flows: Cash receipts - $135,000 Cash payments For inventory purchases - $98,000 For S&A expenses - $42,000 For interest expense - $950 Munoz Medical had a cash balance of $14,000 on January 1. The company desires to maintain a cash cushion of $9,300. Funds are assumed to be borrowed and repaid on the last day of each month. How much does the company need to borrow at the end of January to maintain its cash cushion?

General Accounting: Munoz Medical Clinic has budgeted the following cash flows: Cash receipts - $135,000 Cash payments For inventory purchases - $98,000 For S&A expenses - $42,000 For interest expense - $950 Munoz Medical had a cash balance of $14,000 on January 1. The company desires to maintain a cash cushion of $9,300. Funds are assumed to be borrowed and repaid on the last day of each month. How much does the company need to borrow at the end of January to maintain its cash cushion?

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter8: Budgeting

Section: Chapter Questions

Problem 20E

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Rooney Medical Clinic has budgeted the following cash flows. January February March Cash receipts $ 113,000 $ 119,000 $ 139,000 Cash payments For inventory purchases 96,500 78,500 91,500 For S&A expenses 37,500 38,500 33,500 Rooney Medical had a cash balance of $14,500 on January 1. The company desires to maintain a cash cushion of $6,000. Funds are assumed to be borrowed, in increments of $1,000, and repaid on the last day of each month; the interest rate is 2 percent per month. Repayments may be made in any amount available. Rooney 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 last year’s quarterly results. Required Prepare a cash budget. (Round intermediate and final answers to the nearest whole dollar amounts. Any repayments should be indicated with a minus sign.)
Stuart Medical Clinic has budgeted the following cash flows: January February March Cash receipts $ 115,000 $ 121,000 $ 141,000 Cash payments For inventory purchases 97,500 79,500 92,500 For S&A expenses 38,500 39,500 34,500 Stuart Medical had a cash balance of $15,500 on January 1. The company desires to maintain a cash cushion of $8,000. 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. Stuart 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.
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…
Gibson Medical Clinic has budgeted the following cash flows. Cash receipts January $ 108,000 February $ 114,000 March $ 134,000 Cash payments For inventory purchases. For S&A expenses 94,000 35,000 76,000 36,000 89,000 31,000 Gibson Medical had a cash balance of $12,000 on January 1. The company desires to maintain a cash balance 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. Gibson 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. Cash Budget Section 1: Cash Receipts Total cash available Section 2: Cash Payments Total budgeted…
Gibson Medical Clinic has budgeted the following cash flows: January February March Cash receipts $ 108,000 $ 114,000 $ 134,000 Cash payments For inventory purchases 94,000 76,000 89,000 For S&A expenses 35,000 36,000 31,000 Gibson Medical had a cash balance of $12,000 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. Gibson 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. prepare the cash budget
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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.)