Vernon Medical Clinic has budgeted the following cash flows.
Cash receipts
Cash payments
For inventory purchases
For S&A expenses
January
$ 117,000
February
March
$ 123,000
$ 143,000
98,500
39,500
80,500
40,500
93,500
35,500
Vernon Medical had a cash balance of $16,500 on January 1. The company desires to maintain a cash balance 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. Vernon 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
January
February
March
$ 0 $
0
Total cash available
0
0
0
Section 2: Cash Payments
Total budgeted disbursements
0
0
0
Section 3: Financing Activities
0
0
0
$ 0 $
0 $
0