Rundle Medical Clinic has budgeted the following cash flows. Cash receipts Cash payments For inventory purchases For S&A expenses January $ 112,000 96,000 37,000 February $ 118,000 78,000 38,000 March $ 138,000 91,000 33,000 Rundle Medical had a cash balance of $14,000 on January 1. The company desires to maintain a cash balance of $5,000. 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. Rundle 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.

Rundle Medical Clinic has budgeted the following cash flows. Cash receipts Cash payments For inventory purchases For S&A expenses January $ 112,000 96,000 37,000 February $ 118,000 78,000 38,000 March $ 138,000 91,000 33,000 Rundle Medical had a cash balance of $14,000 on January 1. The company desires to maintain a cash balance of $5,000. 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. Rundle 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.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter4: Internal Control And Cash

Section: Chapter Questions

Problem 66.1C

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