Problem 14 - 21 (Algo) Preparing a cash budget LO 14 - 5

Newman Medical had a cash balance of $18,000 on January 1. The company desires to maintain a cash cushion of $ 7.000. Funds are assumed to be borrowedin increments of $1,000, and repaid on the last day of each monththe Interest rate is 3 percent per month Repayments may be made in any amount available Newman 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 last year's quarterly results

Problem 14-20A (Algo) Preparing a cash budget LO 14.5 Newman Medical Clinic has budgeted the following cash flows. January February March 5120,000 $126,000 $146,000 Cash receipts Cash paynents For inventory purchases For $8A expenses 100.000 41,000 82,000 42,000 95,000 37,000 Newman Medical had a cash balance of $18,000 on January 1. The company desires to maintain a cash cushion of $7000 Funds are assumed to be borrowed, in increments of $1000, 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 Newman 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 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.) January February March $ 05 0 Cash Budget Section 1: Cash Receipts Beginning cash balance Add: Cash receipts Total cash valable Section 2: Cash Payments For inventory purchases For SSA expenses Interest expense por month 0 0 0