Samson Health Center 1 More Info Combined Cash Budget For the Months of July through Septembe a. Cash collections from services in July, August, and September, are projected to be $95,000 July August September Quarter $151,000, and $129,000 respectively. Beginning balance of cash Plus: Cash collections Total cash available Less: Cash payments Ending cash balance before financing Financing: Cash payments for the upcoming third quarter are projected to be 314g,000 in July, $101,000 n August, and 8138.000 in 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 $26,000. The health center has a line of credit with the local bank that allows it to bonrow 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, Samson Health Center pays interest on the pricr month's line of credit endling balance. he actual interest rate that the health center will pay floats since it is ted 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). Al 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, Samson Health Center did not have a balance on its line of credit. Plus: New borrowings Less: Debt repayments Less: Interest payments