All is correct except the two blank interest expenses (keep i mind that the ending cash balance, therefore the borrowing will have to be changed once the interest expenses are included.

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