Explain how is the borrowing (repayment) found

The 17,000 (1560) (12,891)

Franklin Medical Clinic has budgeted the following cash flows: January February March Cash receipts Cash payments $107,000 $113,000 $133,000 For inventory purchases 93,500 75,500 88,500 34,500 35,500 30,500 For S&A expenses Franklin Medical had a cash balance of $11,500 on January 1. The company desires to maintain a cash cushion 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. Franklin 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.)