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Bentfield Health Center provides a variety of medical services. The company is preparing its cash budget for the upcoming third quarter. The following transactions are

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Bentfield Health Center provides a variety of medical services. The company is preparing its cash budget for the upcoming third quarter. The following transactions are expected to occur Click the icon to view the expected transactions) Requirement Prepare a combined cash budget for Bentfield Health Center for the third quarter, with a column for each month and for the quarter total. (If a box is not used in the table leave the box empty, do not enter a zero Use parentheses or a minus sign for negative ending cash balances) More Info a. Cash collections from services in July, August, and September, are projected to be $94,000, $158,000, and $120,000 respectively b. Cash payments for the upcoming third quarter are projected to be $142,000 in July. $109,000 in August, and $130,000 in September c. The cash balance as of the first day of the third quarter is projected to be $34,000 d. The health center has a policy that it must maintain a minimum cash balance of $27,000 The health center has a line of credit with the local bank that allows it to botrow funds in months that it would not otherwise have its minimum balance If the company has more than its minimum balance at the end of any given month, it uses the excess funds to pay off any outstanding line of credit balance. Each month, Bentfield Health Center pays interest on the prior month's line of credit ending balance The actual interest rate that the health center will pay floats since it is tied to the prime rate However, the interest paid during the budget period is expected to be 1% of the prior month's line of credit ending balance (if the company did not have an outstanding balance at the end of the prior month, then the health center does not have to pay any interest) All line of credit borrowings are taken or paid off on the first day of the month As of the first day of the third quarter Bentfield Health Center did not have a balance on its line of credit Bentfield Health Center Combined Cash Budget For the Months of July through September July Beginning balance of cash Plus. Cash collections Total cash available Less: Cash payments Ending cash balance before financing Financing Plus: New borrowings Less Debt repayments Less Interest payments Ending cash balance

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