Question: Problem 7-20A (Algo) Preparing a cash budget LO 7-5 Perez Medical Clinic has budgeted the following cash flows. Perez Medical had a cash balance of

Problem 7-20A (Algo) Preparing a cash budget LO 7-5 Perez Medical

Problem 7-20A (Algo) Preparing a cash budget LO 7-5 Perez Medical Clinic has budgeted the following cash flows. Perez Medical had a cash balance of $13,500 on January 1 . The company desires to maintaln a cash balance of $10,000. Funds are assumed to be borrowed, In Increments of $1,000, and repald on the last day of each month; the Interest rate is 3 percent per month. Repayments may be made in any amount avallable. Perez 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 llability account from this year's quarterly results. Required Prepare a cash budget. Note: Round Intermedlate and final answers to the nearest whole dollar amounts. Any repayments/shortage should be Indlcated with a minus sign

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