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

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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