Thornton Medical Clinic has budgeted the following cash flows. Cash receipts January $116,000 February March $122,000 $142,000 Cash payments For inventory purchases For S&A expenses 98,000 39,000 80,000 40,000 93,000 35,000 Thornton Medical had a cash balance of $16,000 on January 1. The company desires to maintain a cash cushion of $9,000. Funds are assumed to be borrowed, in increments of $1,000, and repaid on the last day of each month; the interest rate is 2 percent per month. Repayments may be made in any amount available. Thornton 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.) Cash Budget January February March Section 1: Cash Receipts Beginning cash balance $ 16,000 $ (5,000) $ (3,000) Add: Cash receipts 116,000 122,000 142,000 132,000 117,000 139,000 Total cash available Section 2: Cash Payments For inventory purchases 98,000 80,000 93,000 For S&A expenses 39,000 40,000 35,000 Interest expense per month Total budgeted disbursements 137,000 120,000 128,000. Section 3: Financing Activities Surplus (shortage) Borrowing (repayment) Ending cash balance (5,000) (3,000) 11,000 $ (5,000) $ (3,000) $ 11,000