E9-6A. Prepare Cash Budget for 3 Months Brewster Corporation expects the following cash receipts and disbursements during the first quarter of the year. (Receipts exclude new borrowings and disburse- ments exclude interest payments on borrowings since January 1.) Cash receipts Cash disbursements. January $260,000 240,000 February March $280,000 $250,000 320,000 260,000 The expected cash balance at January 1 is $42,000. Brewster wants to maintain a cash balance at the end of each month of at least $40,000. Short-term borrowings at 1% interest per month will be used to accomplish this, if necessary. Borrowings (in multiples of $1,000) will be made at the beginning of the month in which they are needed, with interest for that month paid at the end of the month. Prepare a cash budget for the quarter ended March 31.