Brewster Corporation expects the following cash receipts and disbursements during the first quarter of 2016 (receipts exclude new borrowings and disbursements exclude interest payments on borrowings since January 1, 2016) January February March Cash receipts $320,000 $340,000 $310,000 Cash disbursements 300,000 380,000 320,000 The expected cash balance at January 1, 2016, is $102,000. Brewster wants to maintain a cash balance at the end of each month of at least $100,000. 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, 2016.

Why do you get for the month of February short-term borrowing: $19,000 instead of $18,000 ($100,000-$82,000)?