Franklin Medical Clinic has budgeted the following cash flows:

	January			February			March
Cash receipts	$	107,000		$	113,000		$	133,000
Cash payments
For inventory purchases		93,500			75,500			88,500
For S&A expenses		34,500			35,500			30,500

Franklin Medical had a cash balance of $11,500 on January 1. The company desires to maintain a cash cushion of $6,000. Funds are assumed to be borrowed, in increments of $1,000, and repaid on the last day of each month; the interest rate is 2 percent per month. Repayments may be made in any amount available. Franklin 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 years quarterly results.

Required

Prepare a cash budget. (Round intermediate and final answers to the nearest whole dollar amounts. Any repayments/shortage should be indicated with a minus sign. )

Cash Budget	January	February	March
Cash available
Less: Cash payments
Total budgeted payments
Payments minus receipts
Financing Activity