Kinnion Medical Clinic has budgeted the following cash flows. Jan. Feb. March Cash receipts $100,00 $100,600 $126,000 CASH PAYMENTS for inventory purchases $90,000 $72,000 $85,000 for S&A expenses $ 31,000 32,000 27,000 Kinnion Medical had a cash balance of $8,000 on January 1. The company desires to maintain a cash cushion of $5,000. Funds are assumed to be borrowed, in increments of $1,000, and repaid on the last day of each month; the interest rate is 1% per month. Kinnion pays its vendor 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. CASH BUDGET JAN. FEB. MARCH beginning cash balance ?? ?? ?? add cash receipts ?? ?? ?? Cash available (a) ?? ?? ?? LESS CASH PAYMENTS for inventory purchases ?? ?? ?? for s&a expenses ?? ?? ?? interest exp at 1% per month ?? ?? ?? total budgeted payments (b) ?? ?? ?? PAYMENTS MINUS RECEIPTS surplus (shortage) (a-b) ?? ?? ?? FINANCING ACTIVITY borrowing (repayment) (c) ?? ?? ?? ending cash balance (a-b+c) 5,600 5,000 5,000 (40,000) *1%=??? (40,000 + 19,000) *1%=??? (40,000 + 19,000 - 2,010) * 1%=