Rooney Medical Clinic has budgeted the following cash flows:

	January			February			March
Cash receipts	$	113,000		$	119,000		$	139,000
Cash payments
For inventory purchases		96,500			78,500			91,500
For S&A expenses		37,500			38,500			33,500

Rooney Medical had a cash balance of $14,500 on January 1. The company desires to maintain a cash cushion of $6,000. Funds are assumed to be borrowed, in increments of $1,000, and repaid on the last day of each month; the interest rate is 2 percent per month. Repayments may be made in any amount available. Rooney pays its vendors on the last day of the month also. The company had a monthly $40,000 beginning balance in its line of credit liability account from this years quarterly results.

Required

Prepare a cash budget. (Round intermediate and final answers to the nearest whole dollar amounts. Any repayments/shortage should be indicated with a minus sign. )

Prepare a cash budget. (Round intermediate and final answers to the nearest whole dollar amounts. Any repayments/shortage should be indicated with a minus sign. )

looking

• Borrowing (repayment)
• Beginning cash balance
• Ending cash balance
• For inventory purchases
• For S&A expenses

Cash Budget	January	February	March
		$0	$0
Cash available	0	0	0
Less: Cash payments
Total budgeted payments	0	0	0
Payments minus receipts
	0	0	0
Financing Activity
	$0	$0	$0