Fayette Medical Clinic has budgeted the following cash flows. January February March Cash receipts $ 240,000 $ 232,000 $ 272,000 Cash payments For inventory purchases 220,000 164,000 190,000 For S&A expenses 62,000 64,000 54,000 Fayette Medical had a cash balance of $16,000 on January 1. The company desires to maintain a cash balance of $10,000. Funds are assumed to be borrowed, in increments of $2,000, 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. Fayette pays its vendors on the last day of the month also. The company had a monthly $80,000 beginning balance in its line of credit liability account from this years quarterly results. Required Prepare a cash budget.