Question

Alderman 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 Alderman 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 More Info Beginning balance of cash Plus Cash collections Total cash available Les Cash payments Ending cash balance before financing Financing Plus: New borrowings Less: Debt repayments Loss Interest payments Ending cash balance a. Cash collections from services in July August, and September, are projected to be $97,000, $154,000, and $120,000 rospectively. b. Cash payments for the upcoming third quarter are projected to be $140,000 in July $100.000 in August, and $137,000 in September c. The cash balance as of the first day of the third quarter is projected to be $37.000 d. The health center has a policy that it must maintain a minimum cash balance of $27.000 The health center has a line of credit with the local bark that allows it to borrow funds in months that it would not otherwise have its minimum balance. W e company has more than its minimum balance at the end of any given month, uses the excess funds to pay off any outstanding line of credit balance. Each month, Alderman Health Center pays interest on the prior month's line of credit ending balance. The actual interest rate that the health center will pay fonts since it is tied to the prime rate. However, the interest paid during the budget period is expected to be 1% of the prior monty's line of credit ending balance the company did not have an outstanding balance at the end of the prior month, then the health center does not have to pay any interest). All line of credit borrowings are taken or paid off on the first day of the month. As of the first day of the third quarter, Alderman Health Center did not have a balance on line of credit. Enter any number in the edit fields and then click Check Answer. Print Done] parts 3 remaining

Answer 1

Page 0 Date:11_Page No.: CASH BUDGET - July August September Total Total $37000 $410 $ 97000 $154000 $134000 $181000 ($148000) ($106000) $33590 $128000 $161590 (€ 137000) $97590 $379000 $476590 ($ 391000) Beggining balance of cash Plus: cash collections Total cash available les: cash payment Ending cash balonu before financing Financing Plus: New Borrowing Less: Debt Repayment Leo: Interest Payment ($14000) $75000 $24590 $85590 $41000 52410 ($ 41000) ($410) 43410 (5 41000) ($410) Ending cash balonu $27000 $33590 $27000 $87590