Solution-Prepare a cash budget, Baird Medical had a cash

Prepare a cash budget

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Reference no: EM133029467

Question - Baird Medical Clinic has budgeted the following cash flows:

	January	February	March
Cash receipts	$102,000	$108,000	$128,000
Cash payments For inventory purchases	91,000	73,000	86,000
For S&A expenses	32,000	33,000	28,000

Baird Medical had a cash balance of $9,000 on January 1. The company desires to maintain a cash cushion of $7,000. Funds are assumed to be borrowed, in increments of $1,000, and repaid on the last day of each month; the interest rate is 3 percent per month. Repayments may be made in any amount available. Baird 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.

Reference no: EM133029467

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Prepare a cash budget

Reference no: EM133029467

Reference no: EM133029467

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