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a.	Cash collections from services in July, August, and September, are projected to be $92,000, $151,000, and $122,000 respectively.
b.	Cash payments for the upcoming third quarter are projected to be $140,000 in July, $107,000 in August, and $139,000 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 $22,000. 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. 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, LaChut 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 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 sufficient). As of the first day of the third quarter, LaChut Health Center did not have a balance on its line of credit.

September Quarter Combined Cash Budget For the Months of July through September July August Beginning balance of cash Plus: Cash collections Total cash available Less: Cash payments Ending cash balance before financing Financing: Plus: New borrowings Less: Debt repayments Less: Interest payments Ending cash balance

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