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Woodlawn Health Center provides a variety of medical services The company is preparing its cash budget for the PW The following transactions are expected to

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Woodlawn Health Center provides a variety of medical services The company is preparing its cash budget for the \"PW The following transactions are expected to occur 0 (Click the icon to View the expected transactions) Requirement Prepare a combined cash budget for Woodlawn Health Center for the third quarter, with a column for each month and for the quarter total. [If an input eld is not used in the table leave the input eld empty, do not enter a zero. Use parentheses or a minus sign for negative ending cash balances.) Woodlawn Health Center Combined Cash Budget For the Months of July through September July Beginning balance of cash Plus' Cash collections Total cash available Less: Cash payments Ending cash balance before nancing Financrng. Plus: New bonowings Less' Debt repayments Less' interest payments Ending cash balanoe b. c. d. . Cash collections from services in July, August, and September, are projected to be $99,000, $151,000, and $122,000 respectively. Cash payments for the upcoming third quarter are projected to be $144,000 in July, $100,000 in August, and $136,000 in September. The cash balance as of the rst day of the third quarter is pro}ected to be $36,000. The health center has a policy that it must maintain a minimum cash balance of $23,000. 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. it the company has more than its minimum balance atthe end of any given month, it uses the excess funds to pay o any outstanding line of credit balance. Each month, Woodiawn Health Center pays interest on the prior month's line of credit ending balance. The actual interest rate that the health center will pay oats since it is tied to the prime rate. However, the interest paid during the budget period is expected to be 3% ofthe prior month's line of credit ending balanoe {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}. All line of credit borrowings are taken by the end of the month (when the the cash balance has not met its minimum balance), or paid off by the end of the month {when the cash balance is sufcient). As of the rst day of the third quarter, Woodlawn Health Center did not have a balance on its line of credit

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