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Newman Medical Clinic has budgeted the following cash flows: January February March Cash receipts $ 120,000 $ 126,000 $ 146,000 Cash payments For inventory purchases

Newman Medical Clinic has budgeted the following cash flows:

January February March
Cash receipts $ 120,000 $ 126,000 $ 146,000
Cash payments
For inventory purchases 100,000 82,000 95,000
For S&A expenses 41,000 42,000 37,000

Newman Medical had a cash balance of $18,000 on January 1. The company desires to maintain a cash cushion of $7,000. Funds are assumed to be borrowed, in increments of $1,000, and repaid on the last day of each month; the interest rate is 3 percent per month. Repayments may be made in any amount available. Newman 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. )image text in transcribed

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