Perez Medical Clinic has budgeted the following cash flows: January $111,000 February $117,000 March $137,000 Cash receipts Cash payments For inventory purchases For S&A expenses 95,500 36,500 77,500 37,500 90,500 32,500 Perez Medical had a cash balance of $13,500 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. Perez 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. (Round intermediate and final answers to the nearest whole dollar amounts. Any repayments/shortage should be indicated with a minus sign.) Coah Rudaat Januar Sabuan Marah X Answer is complete but not entirely correct. January February March Cash Budget Section 1: Cash Receipts Beginning cash balance Add: Cash receipts $ 13,500 $ 111,000 10,300 117,000 127,300 $ 10,000 137,000 147,000 Total cash available 124,500 Section 2: Cash Payments For inventory purchases 90,500 For S&A expenses 95,500 36,500 1,200 (8,700) 124,500 77,500 37,500 1,770 32,500 1,754 22,246 X 10,530 127,300 147,000 Interest expense per month Surplus (shortage) Total budgeted disbursements Section 3: Financing Activities Borrowing (repayment) Ending cash balance Ending cash balance 0 0 0 10,300 10,300 10,000 X 10,000 10,000 10,000 $ $