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) Cash receipts January February March $300,000 $320,000 $290,000 Cash disbursements 280,000 360,000 300,000 The expected cash balance at January 1, 2016, is $82,000. Brewster wants to maintain a cash balance at the end of each month of at least $80,000. 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 + January Beginning cash balance $ the quarter ended March 31, 2016. Brewster Corporation Cash Budget for the Quarter Ended March 31, 2016 February March 82,000 $ 102,000 $ 80,810 Cash receipts 300,000 320,000 290,000 Short-term borrowings 19,000 10,000 Cash available $ 382,000 $ 441,000 $ 380,810 Cash disbursements $ 280,000 $ 360,000 $ 300,000 Interest payment 190 100 x Total cash disbursements Ending cash balance 280,000 360,190 300,100 x $ 102,000 $ 80,810 $ 80,710 x Check