Newman Medical Clinic has budgeted the following cash flows. January February March Cash receipts $105,000 $111,000 $131,000 Cash payments For inventory 92,500 74,500 87,500 purchases For S&A expenses 33,500 34,500 29,500 Newman Medical had a cash balance of $10,500 on January 1. The company desires to maintain a cash cushion of $10,000. 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. Newman pays its vendors the last day of the month also. The company had monthly $40,000 beginning balance in its line of credit liability account from this year's quarterly results. on a Cash Budget January February March Cash available Less: Cash payments Total budgeted payments Payments minus receipts Financing Activity