Gibson Medical Clinic has budgeted the following cash flows. January February March $108,000 $114,000 $134,000 Cash...

 

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Gibson Medical Clinic has budgeted the following cash flows. January February March $108,000 $114,000 $134,000 Cash receipts Cash payments For inventory purchases For S&A expenses Gibson Medical had a cash balance of $12,000 on January 1. The company desires to maintain a cash cushion of $7,000 Funds are assumed to be borrowed, in increments of $1,000, and repaid on the last day of each month, the interest rate is 3 percent per month. Repayments may be made in any amount available. Gibson 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 year's quarterly results. Cash Budget Required Prepare a cash budget. (Round intermediate and final answers to the nearest whole dollar amounts. Any repayments/shortage should be indicated with a minus sign.) Section 1 Cash Receipts 94,000 76,000 35,000 35,000 Total cash available Section 2: Cash Payments Total budgeted disbursements Section 3. Financing Activities 89,000 31,000 January February March Gibson Medical Clinic has budgeted the following cash flows. January February March $108,000 $114,000 $134,000 Cash receipts Cash payments For inventory purchases For S&A expenses Gibson Medical had a cash balance of $12,000 on January 1. The company desires to maintain a cash cushion of $7,000 Funds are assumed to be borrowed, in increments of $1,000, and repaid on the last day of each month, the interest rate is 3 percent per month. Repayments may be made in any amount available. Gibson 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 year's quarterly results. Cash Budget Required Prepare a cash budget. (Round intermediate and final answers to the nearest whole dollar amounts. Any repayments/shortage should be indicated with a minus sign.) Section 1 Cash Receipts 94,000 76,000 35,000 35,000 Total cash available Section 2: Cash Payments Total budgeted disbursements Section 3. Financing Activities 89,000 31,000 January February March

Answer rating: 100% (QA)

Cash Budget Jan Feb March Beginning cash balance 12000 7800 7000 Add Cash receipt 108000 11400... View the full answer