Prepare Cash Budget For 3 Months Windsor 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): January February March 430,000 $440,000 $400,000 Cash disbursements 390,000 520,000 420,000 Cash receipts The expected cash balance at January 1, 2016, is $75,000. Windsor wants to maintain a cash balance at the end of each month of at least $60,000. 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. Windsor Corporation Cash Budget for the Quarter Ended March 31, 2016 January February March Beginning cash balance75,000 115,000 60,750 X Cash receipts 430,000 440,000 400,000 Short-term borrowings 26,000 20,000 Cash available $505,000 581,000 $480,750 X Cash disbursements $390,000 520,000420,000 Interest payment 250 X 450 X Total cash disbursements 390,000 520,250X 420,450X Ending cash balance 115,000s $115,000 60,750 X60,300 X