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Newman Medical Clinic has budgeted the following cashflows.JanuaryFebruaryMarch Cash receipts$101,000$107,000$127,000 Cash payments For inventory purchases90,50072,50085,500 For S&A expenses31,50032,50027,500 Newman Medical had a cash balanceof $8,500 on January 1. The company desires to maintain a cashcushion of $6,000. Funds are assumed to be borrowed, in incrementsof $1,000, and repaid on the last day of each month; the interestrate is 2 percent per month. Repayments may be made in any amountavailable. Newman pays its vendors on the last day of the monthalso. The company had a monthly $40,000 beginning balance in itsline of credit liability account from this year’s quarterlyresults.RequiredPrepare a cash budget. (Any repayments/shortage shouldbe indicated with a minus sign. Round your answers to the nearestwhole dollar amount.)