Walton Medical Clinic has budgeted the following cash flows.

	January	February	March
Cash receipts	$ 118,000	$ 124,000	$ 144,000
Cash payments
For inventory purchases	99,000	81,000	94,000
For S&A expenses	40,000	41,000	36,000

Walton Medical had a cash balance of $17,000 on January 1. The company desires to maintain a cash balance of $5,000. 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. Walton 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.