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( i ) ( Click the icon to view the expected transactions. ) Requirement not enter a zero. Use parentheses or a minus sign for
iClick the icon to view the expected transactions.
Requirement
not enter a zero. Use parentheses or a minus sign for negative ending cash balances.
St Germaine Health Center
Combined Cash Budget
For the Months of July through Septs
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
More info
a Cash collections from services in July, August, and September, are projected to be $$ and $
respectively.
b Cash payments for the upcoming third quarter are projected to be $ in July, $ in August, and $ in
September.
c The cash balance as of the first day of the third quarter is projected to be $
d The health center has a policy that it must maintain a minimum cash balance of $
The health center has a line of credit with the local bank that allows it to borrow 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, St Germaine 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 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 by the end of the month when the the cash balance has not
met its minimum balance or paid off by the end of the month when the cash balance is sufficient As of the first day of the
third quarter, St Germaine Health Center did not have a balance on its line of credit.
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