January $119,000 February $125,000 March $145,000 Cash receipts Cash payments For inventory purchases For S&A expenses 99,500 40,500 81,500 41,500 94,500 36,500 Zachary Medical had a cash balance of $17,500 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. Zachary 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 last year's quarterly results. Required Prepare a cash budget. (Round intermediate and final answers to the nearest whole dollar amounts. Any repayments should be indicated with a minus sign.) January February March $ $ Cash Budget Section 1: Cash Receipts Beginning cash balance Add: Cash receipts Total cash available Section 2: Cash Payments For inventory purchases For S&A expenses 17,500 $ 119,000 136,500 (4,300) 125,000 120,700 (2,300) 145,000 142,700 99,500 40,500 81,500 41,500 94,500 36,500 800 140.800 123,000 131,000 Interest expense per month Total budgeted disbursements Section 3: Financing Activities Surplus (shortage) Borrowing (repayment) Ending cash balance (4,300) (2,300) 11,700 $ (4,300) $ (2,300) $ 11,700