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Monette Health Center provides a variety of medical services. The company is preparing its cash budget for the upcoming (Click the icon to view the

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Monette Health Center provides a variety of medical services. The company is preparing its cash budget for the upcoming (Click the icon to view the expected transactions.) Requirement Prepare a combined cash budget for Monette Health Center for the third quarter, with a column for each month and for the minus sign for negative ending cash balances.) September Quarter a. Ca res b. Cas Seg c. The d. The Monette Health Center Combined Cash Budget For the Months of July through September July August Beginning balance of cash 31000 25000 Plus: Cash collections 98000 158000 Total cash available 129000 183000 Less: Cash payments 146000 107000 Ending cash balance before financing - 17000 76000 Financing Plus: New borrowings 42000 Less: Debt repayments 0 42000 4200 Loss: Interest payments 25000 Ending cash balance 128000 137000 The heal have its excess for month's in rate. Howe balance if have to pay the third que 0 0 inter any in tha faina and for the quarter total. (If an input field is not used in the table leave the input field empty; do not enter a zero. Use parentheses More Info a. Cash collections from services in July, August, and September, are projected to be $98,000, $158,000, and $128,000 respectively. b. Cash payments for the upcoming third quarter are projected to be $146,000 in July, S107,000 in August, and $137,000 ir September c. The cash balance as of the first day of the third quarter is projected to be $31,000 d. The health center has a policy that it must maintain a minimum cash balance of $25,000 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, Monette 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, Monette Health Center did not have a balance on its line of credit. Print Done

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