Stuart Medical Clinic has budgeted the following cash flows. January $115,000 February $121,000 March $141,000 Cash receipts Cash payments For inventory purchases For S&A expenses 97,500 38,500 79,500 39,500 92,500 34,500 Stuart Medical had a cash balance of $15,500 on January 1. The company desires to maintain a cash cushion of $8,000. 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. Stuart 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 last year's quarterly results. Required Prepare a cash budget. (Round intermediate and final answers to the nearest whole dollar amounts. Any repayments should be indicated with a minus sign.) Answer is not complete. January February March Cash Budget Section 1: Cash Receipts $ 33,500 $ 15,500 115,000 130,500 121,000 34,500 141,000 175,500 Total cash available 154,500 92,500 Section 2: Cash Payments For inventory purchases For S&A expenses Interest expense per month 97,500 38,500 1,000 X 79,500 39,500 34,500 1,000 1,000 X 137,000 120,000 128,000 Total budgeted disbursements Section 3: Financing Activities 34,500 47,500 Borrowing (repayment) (6,500) 40,000 33,500 $ $ 34,500 $ 47,500