Zachary Medical Clinic has budgeted the following cash flows. January February March Cash receipts $ 119,000 $ 125,000 $ 145,000 Cash payments For inventory purchases 99,500 81,500 94,500 For S&A expenses 40,500 41,500 36,500 Zachary Medical had a cash balance of $17,500 on January 1. The company desires to maintain a cash balance of $6,000. 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. Zachary 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.