please help me solve the interest expense per month and borrowing (repayment). Please explain how you get it? Thanks!

Newman Medical had a cash balance of $17.500 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 iability account from this year's quarterly results. Required Prepare a cash budcet (Any repayments shortage should be indicated with a minus sign. Round your answers to the nearest whole dollar amount.) January 17.500 119.000 136.500 February $ (4,300) 125,000 120,700 March S (2.300) 145,000 142,700 Cash Budget Beginning cash balance Add: Cash receipt Cash available Less: Cash payments For inventory purchases For S&A expenses Interest expense per month 99.500 40.500 81.5001 41.500 94,500 36,500 800 Total budgeted payments 140.800 123.000 131.000 Payments minus receipts 14.300) (2.300) 11.700 Surplus (shortage) Financing Activity Borrowing (repayment) Ending cash balance s 12,800 $ 11.700