Question - McBride Medical has budgeted the following cash flows:
Jan Feb 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 Jan. 1. The company desires to mainatain a cash cushion of 5,000. Funds are assumed to be borrowed, in incrementsof 1,000, and be repaid on the last day of the month; the interst rate is 1% per month. McBride pays the vendor onthe last day of the month also. The company had a 30,000 beginning balance in its line if credit liability account.
Prepare a cash budget. (Round all computations to the nearest whole dollar.