Matthew Dean, the accounting manager of Todd Antique Company, is preparing his company's cash budget for the next quarter. Todd desires to maintain a cash cushion of $4,000 at the end of each month. As cash flows fluctuate, the company either borrows or repays funds at the end of a month. It pays interest on borrowed funds at the rate of 1 percent per month Cash Budget July August September Secton 1: Cash Receipts Beginning cash balance Add cash receipts 20,000 180,000 200,000 2 2 192.000 208,000 otal cash ava lable (a) Section 2: Cash Payments For inventory purchases For S&A expenses For interest expense 162,000 37,000 153,000 36,000 171,000 39,000 Total budgeted dsbursements (b) Secton 3: Financing Activities 199,000 2 7 Surplus (shortage) Borrowing (repayments) (c) 1,000 3,000 S 4,000 Ending Cash Balance (a-b +c $ 4,000 S 4,000