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Check my wor Problem 14-20 Preparing a cash budget LO 14-5 Fayette Medical Clinic has budgeted the following cash flows: January $240,000 February $232,000 March
Check my wor Problem 14-20 Preparing a cash budget LO 14-5 Fayette Medical Clinic has budgeted the following cash flows: January $240,000 February $232,000 March Cash receipts Cash payments For inventory purehases For S&A expenses $272,000 220,000 62,000 164,000 64,000 190,000 54,000 Fayette Medical had a cash balance of $16,000 on January 1. The company desires to maintain a cash cushion of $10,00o0. 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 this year's quarterly results Required Prepare a cash budget. (Any repayments/shortage should be indicated with a minus sign. Round intermediate and final answers to the nearest whole dollar amounts.) Cash Budget January February March Cash available Less: Cash payments
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