Newman Medical Clinic has budgeted the following cash flows January February March $114,000 $120,000 $140,000 Cash receipts Cash payments For inventory purchases97,00079,000 92,000 34,000 For S&A expenses 38,000 39,000 Newman Medical had a cash balance of $15,000 on January 1. The company desires to maintain a cash cushion of $7,000. 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 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 year's quarterly results Required Prepare a cash budget. (Any repayments/shortage should be indicated with a minus sign. Round your answers to the nearest whole dollar amount.) Answer is complete but not entirely correct. Cash Budget January February March Beginning cash balance Add: Cash receipt Cash available Less: Cash payments $ 15,000 |$ 7,800 $ 8,150 140,000 148,150 114,000 120,000 129,000 127,800 97,000 79,000 38,00039,000 34,000 1,2001,6501,650 92,000 For inventory purchases For S&A expenses Interest expense per month Total budgeted payments 136,200 119,650 127,650 Payments minus receipts Surplus (shortage) (7,200) 8,150 20,500 Financing Activity Borrowing (repayment) 15,000 0 Ending cash balance $ 7,800 $8,150 20,500