Problem 7-20A (Algo) Preparing a cash budget LO 7-5 Stuart Medical Clinic has budgeted the following cash flows. March January February $115,000 $121,000 $141,000 Cash receipts Cash payments For inventory purchases For S&A expenses Cash Budget 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. Section 1: Cash Receipts 97,500 38,500 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.) Total cash available Section 2 Cash Payments 79,500 39,500 Total budgeted disbursements Section 3 Financing Activities 92,500 34,500 January February March
Problem 7-20A (Algo) Preparing a cash budget LO 7-5 Stuart Medical Clinic has budgeted the following cash flows. March January February $115,000 $121,000 $141,000 Cash receipts Cash payments For inventory purchases For S&A expenses Cash Budget 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. Section 1: Cash Receipts 97,500 38,500 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.) Total cash available Section 2 Cash Payments 79,500 39,500 Total budgeted disbursements Section 3 Financing Activities 92,500 34,500 January February March
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
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.
Question
Please don't provide image in solutions thanku
Transcribed Image Text:Problem 7-20A (Algo) Preparing a cash budget LO 7-5
Stuart Medical Clinic has budgeted the following cash flows.
January February March
$115,000 $121,000 $141,000
Cash receipts
Cash payments
For inventory purchases
For S&A expenses
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. (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
97,500 79,500 92,500
38,500 39,500 34,500
Total cash available
Section 2 Cash Payments
Total budgeted disbursements
Section 3 Financing Activities
January
February
March
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education