Answer Happy

Problem 14-20A (Static) Preparing a cash budget LO 14-5 Fayette Medical Clinic has budgeted the following cash flows January February Cash receipts $240,000 $232,000 Cash payments For inventory purchases 220,000 164,000 For SA expenses 62,000 64,000 March $272,000 190,000 54,000 Fayette Medical had a cash balance of $16,000 on January 1. The company desires to maintain a cash cushion of $10,000. Funds are assumed to be borrowed, in increments of $2,000, 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. Fayette pays its vendors on the last day of the month also. The company had a monthly $80,000 beginning balance in its line of credit liability account from last year's quarterly results. Required Prepare a cash budget. (Any repayments should be indicated with a minus sign. Round intermediate and final answers to the nearest whole dollar amounts.)
Cash Budget Section 1: Cash receipts January February March $ 0 $ 0 Total cash available Section 2: Cash payments 0 0 0 Total budgeted disbursements Section 3: Financing activities 0 0 0 0 0 $ 0 $ + 0 $ 0