Haas 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 2 percent per month in cash on the last day of the month. To be prudent, the company desires to maintain a $16,000 cash cushion. Prepare a cash budget. (Any repayments/shortage which should be indicated with a minus sign. Round your answers to nearest whole dollar amount.)

How to get the borrowing repayment

Cash Budget October Novomber December Beginning cash balance $ 0 $ 16,950 $ 16,000 Plus: Cash receipts 75,000 257,500 283,250 Cash available 75,000 274,450 299,250 Less: Payments For inventory purchases 116,550 166,605 172,390 For selling and administrative expenses 29,500 44,300 46,100 Interest expense 0 5,160 4,312 Purchase of store fixtures 170,000 0 0 0 316,050 216,065 222,802 (241,050) 58,385 76,448 Total budgeted payments Payments minus receipts Surplus (shortage) Financing activity Borrowing (repayment) Ending cash balance 258,000 (42,385) 16,000 $ (60,448) 16,000 $ 16,950 $