The drop down options under Cash Budget are: Beginning Cash Balance, Borrowing (repayment), Ending Cash Balance, For Inventory Purchases, For S&A expenses, Interest expense per month, or Surplus(Shortage). The second box under Cash Budget could either be Add: Cash Receipts or Less: Cash Receipts.

Fayette Medical Clinic has budgeted the following cash flows January February March Cash receipts Cash payments $240,000 $232,000 $272,000 For inventory purchases For S&A expenses 220,000 62,000 164,000 64,000 190,000 54,000 Fayette Medical had a cash balance of $16,000 on January 1. The company desires to maintain a cash cushion of $10,000. Funds are assumed to be borrowed, in increments of $2,000, 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. Fayette pays its vendors on the last day of the month also. The company had a monthly $80,000 beginning balance in its line of credit liability account from this year's quarterly results Required Prepare a cash budget. (Any repayments/shortage should be indicated with a minus sign. Round intermediate and final answers to the nearest whole dollar amounts.) Cash Budget January February March Add: Cash receipts Cash available Less: Cash payments 0 0 Total budgeted payments Payments minus receipts 0 Financing Activity 0