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

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

Problem 7-20A (Algo) Preparing a cash budget LO 7-5 Thornton Medical Clinic has budgeted the following cash flows. Thornton Medical had a cash balance of $16,000 on January 1 . The company desires to maintain a cash balance of $9,000. Funds are assumed to be borrowed, in increments of $1,000, and repaid on the last day of each month; the interest rate is 2 percent per month. Repayments may be made in any amount available. Thornton 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. Required Prepare a cash budget. Note: Round intermediate and final answers to the nearest whole dollar amounts. Any repayments/shortage should be indicated with a minus sign

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