story Bookmarks Window 3896 CO Tue 7:34 PI Module 14 Homework Help Save & Exit S

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story Bookmarks Window 3896 CO Tue 7:34 PI Module 14 Homework Help Save & Exit Submit Check my work 4 Benson Medical Clinic has budgeted the following cash flows $103,000 $109,000 129,000 Cash payments For inventory purchases For S&A; expenses 91,500 73,500 8,500 32,500 33,500 28,500 Benson Medical had a cash balance of $9,500 on January 1. The company desires to maintain a cash cushion of $8,000. Funds are assumed to be borrowed, in increments of $1,000, and repaid on the last day of each month; the interest rate is 1 percent per month. monthly $40,000 beginning balance in its line of credit liability account from this year's quarterly results Required References Repayments may be made in any amount available. Benson pays its vendors on the last day of the month also. The company had a 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. )

Explanation / Answer

Cash budget :

January February March Beginning balance 9500 8500 8100 Cash receipt 103000 109000 129000 Cash available 112500 117500 137100 Less: Cash payment For inventory purchase 91500 73500 86500 For S&A expense 32500 33500 28500 Interest expense 4000 6400 6400 Total budgeted payment 128000 113400 121400 Payment minus receipts -15500 4100 15700 Financing activities Amount borrowed 24000 4000 0 Amount repaid -7700 Ending balance 8500 8100 8000

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