Newman Medical Clinic has budgeted the following cash flows. tes January February March Cash receipts $113,000 $119,000 $139,000 Cash payments 96,500 78,500 91,500 33,500 For inventory purchases For S&A expenses 37,500 38,500 Newman Medical had a cash balance of $14,500 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. 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.) Cash Budget Beginning cash balance Add: Cash receipt Cash available January February March $ 14,500 $ (6,500) $ (4,500) 113,000 119,000 139,000 127,500 112,500 134,500 Less: Cash payments For inventory purchases 96,500 78,500 91,500 For S&A expenses 37,500 38,500 33,500 Interest expense per month Total budgeted payments Payments minus receipts 134,000 117,000 125,000 (6,500) (4,500) 9,500 Financing Activity Borrowing (repayment) Ending cash balance $ (6,500) $ (4,500) $ 9,500