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Finch Medical Clinic has budgeted the following cash flows. ...

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Accounting

Finch Medical Clinic has budgeted the following cash flows.

January February March
Cash receipts $ 106,000 $ 112,000 $ 132,000
Cash payments
For inventory purchases 93,000 75,000 88,000
For S&A expenses 34,000 35,000 30,000

Finch Medical had a cash balance of $11,000 on January 1. The company desires to maintain a cash cushion of $5,000. Funds are assumed to be borrowed, in increments of $1,000, and repaid on the last day of each month; the interest rate is 1 percent per month. Repayments may be made in any amount available. Finch pays its vendors on the last day of the month also. The company had a monthly $40,000 beginning balance in its line of credit liability account from this years quarterly results.image

January February March Cash Budget Section 1: Cash Receipts Beginning cash balance Add: Cash receipts $ 0 0 Total cash available 0 0 Section 2: Cash Payments 0 0 0 Total budgeted disbursements Section 3: Financing Activities 0 O 0 $ 0 $ O $ 0

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