Gibson Medical Clinic has budgeted the following cash flows:

	January			February			March
Cash receipts	$	108,000		$	114,000		$	134,000
Cash payments
For inventory purchases		94,000			76,000			89,000
For S&A expenses		35,000			36,000			31,000

Gibson Medical had a cash balance of $12,000 on January 1. The company desires to maintain a cash cushion of $7,000. Funds are assumed to be borrowed, in increments of $1,000, and repaid on the last day of each month; the interest rate is 3 percent per month. Repayments may be made in any amount available. Gibson 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 Section 1: Cash Receipts January February March Total cash available Section 2: Cash Payments Total budgeted disbursements Section 3: Financing Activities