Please help me with this question! I am not sure If I am doing right. I tried to finish January but I am confused.

Fayette Medical Clinic has budgeted the following cash flows:

	January			February			March
Cash receipts	$	240,000		$	232,000		$	272,000
Cash payments
For inventory purchases		220,000			164,000			190,000
For S&A expenses		62,000			64,000			54,000

Fayette Medical had a cash balance of $16,000 on January 1. The company desires to maintain a cash cushion of $10,000. Funds are assumed to be borrowed, in increments of $2,000, 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. Fayette pays its vendors on the last day of the month also. The company had a monthly $80,000 beginning balance in its line of credit liability account from this years quarterly results.

Required

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

Cash Budget	January	February	March
Beginning cash balance	$16,000
Add: Cash receipts	240,000
Cash available	256,000
Less: Cash payments
For inventory purchases	220,000
For S&A expenses	62,000
Interest expense per month	800
Total budgeted payments	282,800
Payments minus receipts
Surplus (shortage)	(26,800)
Financing Activity
Borrowing (repayment)
Ending cash balance