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Franklin Medical Clinic has budgeted the following cash flows. January February March...

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Accounting

Franklin Medical Clinic has budgeted the following cash flows.
January February March
Cash receipts $ 107,000 $ 113,000 $ 133,000
Cash payments
For inventory purchases 93,50075,50088,500
For S&A expenses 34,50035,50030,500
Franklin Medical had a cash balance of $11,500 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. 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 years quarterly results.
Required
Prepare a cash budget.
Note: Round intermediate and final answers to the nearest whole dollar amounts. Any repayments/shortage should be indicated with a minus sign.

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