Acc202 Survey of Accounting: P14-20 McBride Medical Clinic has budgeted the following cash flows

Acc202 Survey of Accounting Problem 14-20 Preparing a Cash Budget McBride Medical Clinic has budgeted the following cash flows. January February March Cash receipts 101,000 108,000 125,000 Cash payments: For inventory purchases 92,000 72,000 83,000 For S&A expenses 30,000 32,000 26,000 McBride Medical had a cash balance of $7,000 on January 1. The company desires to maintain a cash cushion of $5,000. 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. McBride pays its vendor on the last day of the month also. The company had a $30,000 beginning balance in its line of credit liability account. Required: Prepare a cash budget. (Round all computations to the nearest whole dollar).
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