The accountant for Jeans Dress Shop prepared the following cash budget. Jeans desires to maintain a cash cushion of $10,000 at the end of each month. Funds are assumed to be borrowed and repaid on the last day of each month. Interest is charged at the rate of 1 percent per month.

Cash Budget	July	August	September
Section 1: Cash receipts
Beginning cash balance	$25,000	$10,000	$10,000
Add cash receipts	90,000	100,000	120,300
Total cash available	115,000	110,000	130,300
Section 2: Cash payments
For inventory purchases	82,750	70,115	87,076
For S&A expenses	27,250	30,280	30,716
For interest expense	0	50	54
Total budgeted disbursements	110,000	100,445	117,846
Section 3: Financing activities
Surplus (shortage)	5,000	9,555	12,454
Borrowing (repayments)	5,000	445	(2,454)
Ending cash balance	$10,000	$10,000	$10,000

It says "

5,000 1% = 50 (rounded) ²(5,000 + 445) 1% = 54 (rounded). Note that $2,454 is repaid at the end of month, in addition to interest, that still has to be paid in September."

Q1- why did we do that in 2?