Benson Medical Clinic has budgeted the following cash flows:

	January			February			March
Cash receipts	$	103,000		$	109,000		$	129,000
Cash payments
For inventory purchases		91,500			73,500			86,500
For S&A expenses		32,500			33,500			28,500

Benson Medical had a cash balance of $9,500 on January 1. The company desires to maintain a cash cushion of $8,000. 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. Benson 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 year’s quarterly results.

Required

Prepare a cash budget. (Round intermediate and final answers to the nearest whole dollar amounts. Any repayments/shortage should be indicated with a minus sign. )

Cash Budget	January	February	March
Beginning cash balance
Add: Cash receipts
Cash available
Less: Cash payments
For inventory purchases
For S&A expenses
Interest expense per month
Total budgeted payments
Payments minus receipts
Surplus (shortage)
Financing Activity
Borrowing (repayment)
Ending cash balance	$0	$0	$0