Solomon Medical Clinic has budgeted the following cash flows.

	January			February			March
Cash receipts	$	114,000		$	120,000		$	140,000
Cash payments
For inventory purchases		97,000			79,000			92,000
For S&A expenses		38,000			39,000			34,000

Solomon Medical had a cash balance of $15,000 on January 1. The company desires to maintain a cash cushion of $7,000. Funds are assumed to be borrowed, in increments of $1,000, and repaid on the last day of each month; the interest rate is 3 percent per month. Repayments may be made in any amount available. Solomon 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. )

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) Cash Budget Section 1 Cash Receipts January February March $ 0 $ 0 0 0 0 Total cash available Section 2: Cash Payments 0 0 0 Total budgeted surements Section 3 Francing Adi 0 0 0 $ 05 05