Problem 14-20 Preparing a cash budget LO 14-5 Rundle Medical Clinic has budgeted the following cash flows: January $ 112,000 Cash receipts Cash payments For inventory purchases For S&A expenses For Interest expense 96,000 37,000 400 Rundle Medical had a cash balance of $14,000 on January 1. The company desires to maintain a cash cushion of $5,000. Funds are assumed to be borrowed and repaid on the last day of each month. Required a Calculate the company's surplus (shortage) of cash before financing for the month of January b. How much does the company need to borrow at the end of January to maintain its cash cushion? a Surplus (shortage) before financing b. Amount of borrowing