Prepare Cash Budget For 3 Months Brewster Corporation expects the following cash receipts and disbursements during the first quarter of 2019 (receipts exclude new borrowings and disbursements exclude interest payments on borrowings since January 1, 2019): January February March Cash receipts $260,000 $280,000 $250,000 Cash disbursements 240,000 320,000 260,000 The expected cash balance at January 1, 2019, is $42,000. Brewster wants to maintain a cash balance at the end of each month of at least $40,000. 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, 2019. Brewster Corporation Cash Budget for the Quarter Ended March 31, 2019 January February March Beginning cash balance Answer 42,000 Answer 62,000 Answer 40,810 Cash receipts Answer 260,000 Answer 280,000 Answer 250,000 Short-term borrowings Answer 0 Answer 19,000 Answer 10,000 Cash available Answer 302,000 Answer 361,000 Answer 300,810 Cash disbursements Answer 240,000 Answer 320,000 Answer 260,000 Interest payment Answer 0 Answer 190 Answer 290 Total cash disbursements Answer 240,000 Answer 320,190 Answer 260,290 Ending cash balance Answer 62,000 Answer 40,810 Answer 40,520

**I am not understanding where the 19,000 and 10,000 is coming from or how it is calculated.