Kinnion medical had a cash balance of 8000 on january 1 the

Reference no: EM13599549

Kinnion Medical Clinic has budgeted the following cash flows.

January February March Cash receipts$ 100,000 $106,000 $126,000 Cash payments For inventory purchases 90,000 72,000 85,000 For S&A expenses 31,000 32,000 27,000

Kinnion Medical had a cash balance of $8,000 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. Repayments may be made in any amount available. Kinnion 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. (Round all computations to the nearest whole dollar.)

Reference no: EM13599549

Questions Cloud

A shavon company has total fixed costs of 6000000 and : a shavon company has total fixed costs of 6000000 and total variable cost of 3000000 at a volume level of 300000 units.

As an accounting manager for a growing graphic design : as an accounting manager for a growing graphic design company you are responsible for preparing the monthly financial

The rogers leasing company signed an agreement to lease an : the rogers leasing company signed an agreement to lease an asset that has a fair value of 800000 on december 312010.

The tobias company has 12 obsolete computers that are : the tobias company has 12 obsolete computers that are carried in inventory at a cost of 13200. if these computers are

Kinnion medical had a cash balance of 8000 on january 1 the : kinnion medical clinic has budgeted the following cash flows. january february march cash receipts 100000 106000

Tylers consulting company has purchased a new 15000 copier : tylers consulting company has purchased a new 15000 copier. this overhead cost will be shared by the purchasing

What percentage increase in sales would enable the company : mccarty pointers inc. expects to begin operations on january 1 2012 it will operate as a specialty sales company that

The lemon company made a credit sale of 20000 the invoice : the lemon company made a credit sale of 20000. the invoice was sent today with the terms 310 net 30. this customer

If the only current assets shown on the balance sheet for : assume that the current ratio for arch company is 2.0 its acid- test ratio is 1.5 and its working capital is 300000.

User Account

All Pages