Prepare Cash Budget For 3 Months Brewster Corporation expects the following cash receipts and disbursements during the first quarter of 2016 (receipts exclude new borrowings and disbursements exclude interest payments on borrowings since January 1, 2016) anuary February March 290,000 $310,000 $280,000 Cash disbursements 270,000 350,000 290,000 Cash receipts The expected cash balance at January 1, 2016, is $72,000. Brewster wants to maintain a cash balance at the end of each month of at least $70,000. Short-term borrowings at 1% interest per month will be used to accomplish this, if necessary. Borrowings (in multiples of $1,000) will be made at the beginning of the month in which they are needed, with interest for that month paid at the end of the month. Prepare a cash budget for the quarter ended March 31, 2016. Brewster Corporation Cash Budget for the Quarter Ended March 31, 2016 January February March Beginning cash balance5 s 72,000 92,000 Cash receipts 290,000 310,000 280,000 Short-term borrowings 362,000 Cash available 270,000 S350,000 S 290,000 Cash disbursements Interest payment Total cash disbursements 270,000 92.000