Prepare Cash Budget For $3$ Months

Brewster Corporation expects the following cash receipts and disbursements during the first quarter of the year $($receipts exclude new borrowings and disbursements exclude interest payments on borrowings since January $1)$

January February March

Cash receipts $$330,000$ $$350,000$ $$320,000$

Cash disbursements $310,000390,000330,000$

The expected cash balance at January $1,$ is $$122,000.$ Brewster wants to maintain a cash balance at the end of each month of at least $$110,000.$ 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 $31.$

Brewster Corporation

Cash Budget for the Quarter Ended

March $31$

January February March

Beginning cash balance

Cash receipts

Short$-$term borrowings

Cash available

Cash disbursements

Interest payment

Total cash disbursements

Ending cash balance