Problem 14-20A (Algo) Preparing a cash budget LO 14-5 Finch Medical Clinic has budgeted the following cash flows. January February March Cash receipts 5106,000 $112,000 5132,000 Cash payments Tor inventory purchases 93,000 75,000 38,000 For SA expenses 34,000 35.000 30,000 Finch Medical had a cash balance of $11,000 on January 1. The company desires to maintain a cash cushion of $5,000. Funds are assumed to be borrowed in increments of $1.000, and repald on the last day of each month the interest rate is 1 percent per month. Repayments may be made in any amount available. Finch pays its vendors on the last day of the month also. The company had a manthly $40,000 beginning balance in its line of credit liability account from last year's quarterly results Required Prepare a cash budget. (Round intermediate and final answers to the nearest whole dollar amounts. Any repayments should be Indicated with a minus sign.) Answer is not complete. January February March Cash Budget Section 1: Cash Receipts Beginning cash balance Add: Cash receipt Total cash available Section 2 Cash Payments For inventory purchases For SA expenses Interest Expense per month 11.000 126,800) 117.000 112.000 128.000 114.800) 5 (235.600) 122.000 (103,6001 OOO 93.000 34.000 400 127.400 254 800 000 75.000 35 000 400 38.000 30.000 400 $ 118.400 236 800 OOO 110.400 220.500 Total budgled disbursements Section Financing Activities Surplus (hortage Borrowing payment Ending cash balance (126.600) (235.600) (340.400 00 (126,8001 $ 0235.600) 5 (540400)