Question

Monachino Health Center provides a variety of medical services. The company is preparing its cash budget for the upcoming third quarter. The following transactions are expected to our Click the icon to view the expected transactions.) Requirement Prepare a combined cash budget for Monachino Health Center for the third quarter, with a column for each month and for the quarter total (a box is not used in the table leave the box empty, do not enter a zero. Use parentheses or a minus sign for negative ending cash balances.) For the Months of July through September July Beginning balance of cash Plus: Cash collections Total cash available Less: Cash payments Ending cash balance before financing Financing Plus: New borrowings Less: Debt repayments Less: Interest payments Ending cash balance

Answer 1

Monachino Health Center Combined Cash Budget For the month of July through September July August September Third Quarter 38000 94000 132000 143000 -11000 27000 151000 178000 106000 72000 32860 121000 153860 139000 14860 38000 366000 total of 3 months 404000 388000 total of 3 months 16000 Beginning balance of cash Plus: Cash collection Total cash available Less: Cash Payment Ending cash balance before financing Financing : Plus: New Borrowing Less: Debt Repayment Less: Interest Payment Ending cash balance 38000| 0| 38000 11401 2860 121401 0 0 27000 50140 total of 3 months 38000 total of 3 months 1 140 total of 3 months 27000) 27000 3 Beginning balance of quarter is same as beginning balance of july. After solving we should get ending balance of September and ending balance of quarter same. In July ending balance before financing is (11000) and we require minimum cash balance of 27000, so we borrow 38000 In Sept ending balance before financing is 14860 we require 12140 to get ending balnce of 27000. interest = 38000 x 3% = 1150. in July and September there was no pending loans so interest and repayment is 0.