Quiz: CH 9 Quiz Time Remaining: 00:45:48 Submit Quiz This Question: 3 pts 15 of 16 (15 complete) This Quiz: 20 pts possible Gammaro Health Center provides a variety of medical services. The company is preparing its cash budget for the upcoming third quarter. The following transactions are expected to occur: (Click the icon to view the expected transactions.) Requirement Prepare a combined cash budget for Gammaro Health Center for the third quarter, with a column for each month and for the quarter total minus sign for negative ending cash balances) More Info Combined Cash Budget For the Months of July through September a. Cash collections from services in July, August, and September, are projected to be $98,000, S155.000, and $123,000 respectively. b. Cash payments for the upcoming third quarter are projected to be $147,000 in July. August September Quarter 104,000 in August, and $132,000 in September. c. The cash balance as of the first day of the third quarter is projected to be $32,000. d. The health center has a policy that it must maintain a minimum cash balance of 32000 98000 130000 147000 (17000) 28000 155000 183000 104000 79000 32000 Beginning balance of cash Plus: Cash collections Total cash available Less: Cash payments Ending cash balance before financing 376000 123000 $28,000. 408000 (383000) 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 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, Gammaro 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 2% 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 132000 has more 25000 Plus: New borrowings Less: Debt repayments Less: Interest payments 45000 45000) the first day ofthe month Asof the frst dav of the thire auarter Gammarn Healh Ending cash balance Print Done Enter any number in the edit fields and then continue to the next