Adams Medical Clinic has budgeted the following cash flows: January February March Cash receipts $ 101,000 $ 107,000 $ 127,000 Cash payments For inventory purchases 90,500 72,500 85,500 For S&A expenses 31,500 32,500 27,500 Adams Medical had a cash balance of $8,500 on January 1. The company desires to maintain a cash cushion of $6,000. 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. Adams 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 years 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. )

Check Prepare a cash budget. (Round intermediate and final answers to the nearest whole dollar amo repayments/shortage should be indicated with a minus sign. ) January February March 3.34 points $ $ $ Cash Budget Section 1: Cash Receipts Beginning cash balance Add: Cash receipts Total cash available Section 2: Cash Payments 8,500 101,000 109,500 109,500 107,000 216,500 216,500 127,000 343,500 eBook Print Total budgeted disbursements Section 3: Financing Activities 109,500 216,500 343,500 $ 109,500 $ 216,500 $ 343,500