Thornton Medical Clinic has budgeted the following cash flows January $ 116,000 Cash receipts Cash payments For inventory purchases For S&A expenses 98,000 39,000 February $ 122,000 80,000 40,000 March $ 142,000 93,000 35,000 Thornton Medical had a cash balance of $16,000 on January 1. The company desires to maintain a cash balance of $9,000. 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. Thornton 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.

Thornton Medical Clinic has budgeted the following cash flows January $ 116,000 Cash receipts Cash payments For inventory purchases For S&A expenses 98,000 39,000 February $ 122,000 80,000 40,000 March $ 142,000 93,000 35,000 Thornton Medical had a cash balance of $16,000 on January 1. The company desires to maintain a cash balance of $9,000. 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. Thornton 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.

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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2
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