McBride Medical Clich has budgeted the following cash flows.
Jan. Feb. March
Cash Receipts $101,000 $108,000 $125,000
Cash Payments
For inventory purchases $92,000 $72,000 $83,000
For S&A expenses $30,000 $32,000 $26,000
McBride Medical had a cash balance of $7,000 on Jan. 1st. The company desires to maintain a cash cushion 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. McBrdige pays its vendor on the last day of the month also. The company had a $30,000 beginning balance in its line of credit liabiliy account.
REQUIRED
Prepare a cash budget. (Round all computations to the nearest whole dollar.)