Solomon Medical Clinic has budgeted the following cash flows. Cash receipts Cash payments For inventory purchases For S&A expenses Cash Budget Section 1: Cash Receipts Beginning cash balance Add: Cash receipts Total cash available Section 2: Cash Payments January $ 114,000 Q Search 97,000 38,000 $ February $ 120,000 Solomon Medical had a cash balance of $15,000 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. Solomon 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 rests. 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. January 79,000 39,000 15,000 $ 114.000 129,000 March $ 140,000 February (7,200) S 120,000 112,800 March 92,000 34,000 (5,200) 140,000 134,800 < Prev 3 of 3 HH d Help Next 17 Sav
Solomon Medical Clinic has budgeted the following cash flows. Cash receipts Cash payments For inventory purchases For S&A expenses Cash Budget Section 1: Cash Receipts Beginning cash balance Add: Cash receipts Total cash available Section 2: Cash Payments January $ 114,000 Q Search 97,000 38,000 $ February $ 120,000 Solomon Medical had a cash balance of $15,000 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. Solomon 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 rests. 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. January 79,000 39,000 15,000 $ 114.000 129,000 March $ 140,000 February (7,200) S 120,000 112,800 March 92,000 34,000 (5,200) 140,000 134,800 < Prev 3 of 3 HH d Help Next 17 Sav
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Need interest per month and borrowing
Transcribed Image Text:Solomon Medical Clinic has budgeted the following cash flows.
Cash receipts
Cash payments
For inventory purchases
For S&A expenses
Cash Budget
Section 1: Cash Receipts
Beginning cash balance
Add: Cash receipts
Total cash available
Section 2: Cash Payments
January
$ 114,000
Q Search
97,000
38,000
$
January
February
$ 120,000
Solomon Medical had a cash balance of $15,000 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. Solomon 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 rests.
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.
15.000 $
114,000
129,000
79,000
39,000
< Prev
February
March
$ 140,000
(7,200) S
120,000
112,800
3 of 3
March
92,000
34,000
(5,200)
140,000
134,800
HH
C
Next
11
Help
20
114
Save & Exit S
Check my w
Transcribed Image Text:S
with a minus sign.
Cash Budget
Section 1: Cash Receipts
Beginning cash balance
Add: Cash receipts
Total cash available
Section 2: Cash Payments
For inventory purchases
For S&A expenses
Interest expense per month
Total budgeted disbursements
Section 3: Financing Activities
Surplus (shortage)
Borrowing (repayment)
Ending cash balance
answers to the nearest whole dollar amounts. Any repayments/shortage should be indicated
Q Search
$
$
January
15,000 $
114,000
129,000
97,000
38,000
1,200
136,200
(7,200)
February
(7,200) $
120,000
112,800
< Prev
79,000
39,000
118,000
(5,200)
(7,200) $ (5,200) $
3 of 3
March
(5,200)
140,000
134,800
92,000
34,000
126,000
8,800
8,800
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