Problem 14-20A (Algo) Preparing a cash budget LO 14-5 Finch Medical Clinic has budgeted the following cash flows. January February March $106,000 $112,000 $132,000 Canh receipts Cash payments For Inventory purchases Tor sex expenses 93,000 34,000 75,000 35,000 38,000 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 repaid 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 monthly $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 complete but not entirely correct. January February March $ Cash Budget Section 1: Cash Receipts Beginning cash balance Add: Cash receipts Total cash available Section 2. Cash Payments For inventory purchases For S&A expenses Interest expense per month 11,000$ (121.800) 106,000 112.000 117,000 (9,800) $ 232,960) 132.000 (100,000) 00 93,000 34.000 400 127.400 254,800 30 75,000 35,000 560 110,560 221,120 OO 88,000 30,000 540 118,450 236,990 Total budgeted disbursements Section 3: Financing Activities Surplus (shortage) Borrowing repayment) Ending cash balance (137,800) 16.000 $ (121,800) (230,920) (2,040) $ (232 960) (337.950) (13460) $ 351,410)