Problem $14-20$A $($Algo$)$ Preparing a cash budget LO $14-5$

Finch Medical Clinic has budgeted the following cash flows.

$\backslash$begin$\{$tabular$\}\{$lrrr$\}$

& January & February & March $\backslash \backslash$

$\backslash$hline Cash receipts & $\backslash (\backslash$$ $106,000\backslash )$ & $\backslash (\backslash$$ $112,000\backslash )$ & $\backslash (\backslash$$ $132,000\backslash )\backslash \backslash$

Cash payments & & & $\backslash \backslash$

$\backslash (\backslash$quad $\backslash )$ For inventory purchases & $93,000$ & $75,000$ & $88,000\backslash \backslash$

For S $\backslash (\backslash$& $\backslash )$ expenses & $34,000$ & $35,000$ & $30,000\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$

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

Required

Prepare a cash budget. $($Round intermediate and final answers to the nearest whole dollar amounts. Any repayments should be indicated with a minus sign.$)$

Answer is not complete.

$\backslash$begin$\{$tabular$\}\{|$c$|$c$|$c$|$c$|$c$|$c$|$c$|$c$|\}$

$\backslash$hline $\backslash$multicolumn$\{2\}\{|$l$|\}\{$Cash Budget$\}$ & $\backslash$multicolumn$\{2\}\{|$r$|\}\{$January$\}$ & $\backslash$multicolumn$\{2\}\{|$r$|\}\{$February$\}$ & $\backslash$multicolumn$\{2\}\{|$r$|\}\{$March$\}\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{8\}\{|$l$|\}\{$Section $1$: Cash Receipts$\}\backslash \backslash$

$\backslash$hline Beginning cash balance & $($ & $\backslash$$ & $11,000$ & $\backslash$$ & $49,000$ & $\backslash$$ & $\backslash ((28,150)\backslash )\backslash \backslash$

$\backslash$hline Add: Cash receipts & $($ & & $106,000\backslash (>\backslash )$ & & & & $\backslash \backslash$

$\backslash$hline Total cash available & & & $117,000$ & & $49,000$ & & $\backslash ((28,150)\backslash )\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{8\}\{|$l$|\}\{$Section $2$: Cash Payments$\}\backslash \backslash$

$\backslash$hline For inventory purchases & $($ & & $93,000$ & & $75,000$ & & $88,000\backslash \backslash$

$\backslash$hline For S$\backslash$&A expenses & $($ & & & & & & $\backslash \backslash$

$\backslash$hline Interest expense per month & $($ & & $400$ & & $\backslash (550\backslash$times $\backslash )$ & & $540\backslash \backslash$

$\backslash$hline Total budgeted disbursements & & & $93,400$ & & $75,550$ & & $88,540\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{8\}\{|$l$|\}\{$Section $3$: Financing Activities$\}\backslash \backslash$

$\backslash$hline Surplus $($shortage$)$ & $($ & & $23,600$ & & $\backslash ((26,550)\backslash )$ & & $\backslash ((116,690)\backslash )\backslash \backslash$

$\backslash$hline Borrowing $($repayment$)$ & $($ & & $25,400\backslash (\backslash$times $\backslash )$ & & $\backslash ((1,600)\backslash$times $\backslash )$ & & $13,461\backslash (\backslash$times $\backslash )\backslash \backslash$

$\backslash$hline Ending cash balance & $($ & $\backslash$$ & $49,000$ & $\backslash$$ & $\backslash ((28,150)\backslash )$ & & $\backslash ((103,229)\backslash )\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$