Newman Medical Clinic has budgeted the following cash flows.

Newman Medical had a cash balance of $8,000 on January 1. The company desires to maintain a cash cushion of $5,000. Funds are assumed to be borrowed, in increments of $1,000, and repaid on the last day of each month; the interest rate is 1 percent per month. Repayments may be made in any amount available. Newman 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. (Round all computations to the nearest wholedollar.)

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January Febuary March $120,000 $116,000 $136,000 95,000 Cash receipts Cash payments For inventory purchases For S&A expenses 110,000 31,000 82,000 32,000 27,000