G. Stuart borrows funds, in increments of $1,000, and repays them on the last day of the month. Repayments may be made in any amount available. The company also pays its vendors on the last day of the month. It pays interest of 1 percent per month in cash on the last day of the month. To be prudent, the company desires to maintain a $26,000 cash cushion. Prepare a cash budget.

Cash Budget
	October	November	December
Beginning cash balance	$0
Add: Cash receipts	91,000	278,200	333,840
Cash available	91,000	278,200	333,840
Less: Payments
For inventory purchases	104,832	184,454	205,724
For selling and administrative expenses	33,400	50,240	54,088
Interest expense	0
Purchase of store fixtures	228,400	0	0
Total budgeted payments	366,632	234,694	259,812
Payments minus receipts
Surplus (shortage)	(275,632)	43,506	74,028
Financing activity
Borrowing (repayment)
Ending cash balance	$(275,632)	$43,506	$74,028