Acct301 week2

2 Baird Medical Clinic has budgeted the following cash flows: January February March Cash receipts $102, 604 $108,600 $128,090 Cash payments For inventory purchases 91, 806 73, 608 86,600 10 For SBA expenses 32,909 33,600 28, 800 Baird Medical had a cash balance of $9,000 on January 1. The company desires to maintain a cash cushion 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. Baird 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 (Round Intermediate and final answers to the nearest whole dollar amounts. Any repayments/shortage should be Indicated with a minus sign.) Cach Budgot January February March Section 1: Cash Receipts 102,000 192,000 S 192 000 Log: Cash rocolpts 111,000 Total cash available 213,000 192,000 192,000 Section 2: Cash Payments 21,000 Total budgeted disbursements 21,000 Section 3: Financing Activities 192.000 192,000 192,000 192,000 $ 192 000 $ 192.000