The Patchen Urgent Care Clinic is preparing a cash budget for March 2006. Management has collected the following information:

1. The cash balance on February 29, 2016 is $ 40,000.
2. Actual services provided in January and February and projected services for March are:

January February March

Cash services $ 60,000 $ 50,000 $ 70,000

Credit services $420,000 $520,000 $470,000

40 percent of credit services are collected in the month of service, and

60 percent are collected in the month following service.

c. Patchens actual purchases for February and its projected purchases for March

are as follows:

February March

Credit purchases $ 70,000 $ 65,000

All accounts payable are paid in the month following the purchase.

d. Salaries and wages paid in March will be $450,000.

e. Depreciation on equipment used in the clinic for March will be $65,000.

f. Other cash expenses for March will be $92,000.

g. The company must maintain a minimum cash balance of $30,000. An open line of

credit is available from the companys bank to bolster the cash position as

needed.

REQUIRED:

1. Prepare a schedule of expected cash collections for March, 2016.
2. Prepare a cash budget for March, 2016. Indicate in the financing section any borrowing that will be needed during the month.