Hong Company has budgeted the following cash flows:

Hong had a $36,000 cash balance on April 1. The company desires a $60,000 cash cushion before paying interest. Funds are assumed to be borrowed, in increments of $1,000, and repaid on the last day of each month; the interest rate is 1.50 percent per month. Hong also pays its vendors on the last day of the month.

Required
Prepare a cashbudget.

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April $400,000 410,000 May $440,000 420,000 June $660,000 464,000 Cash receipts Cash payments For inventory purchases For S&A expenses 80,000 106,000 132,000