Rundle Medical Clinic has budgeted the following cash flows:

Can you help in obtaining the Interest expense per month & Borrowing (repayment) section of the table?

	January			February			March
Cash receipts	$	112,000		$	118,000		$	138,000
Cash payments
For inventory purchases		96,000			78,000			91,000
For S&A expenses		37,000			38,000			33,000

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, in increments of $1,000, and repaid on the last day of each month; the interest rate is 1 percent per month. Repayments may be made in any amount available. Rundle 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. )

Answer is not complete.

Cash Budget	January	February	March
Beginning cash balance	$14,000	$6,000	$8,000
Add: Cash receipts	112,000	118,000	138,000
Cash available	126,000	124,000	146,000
Less: Cash payments
For inventory purchases	96,000	78,000	91,000
For S&A expenses	37,000	38,000	33,000
Interest expense per month	????	?????	???????
	$0.00	$0.00	$0.00
Total budgeted payments	133,000	116,000	124,000
Payments minus receipts
Surplus (shortage)	(7,000)	8,000	22,000
Financing Activity
Borrowing (repayment)	13,000	????	?????
Ending cash balance	$6,000	$8,000	$36,000