Haupt Consulting began January with \($10,000\) cash. Management forecasts that collections from credit customers will be \($50,000\) in January and \($53,500\) in February. Projected cash payments include equipment purchases (\($18,000\) in January and \($40,400\) in February) and operating expenses (\($5,000\) each month).

Haupt’s bank requires a \($25,000\) minimum balance in the store’s checking account. At the end of any month when the account balance dips below \($25,000\), the bank automatically extends credit to the store in multiples of \($5,000\). Haupt borrows as little as possible and pays back loans in each month in \($1,000\) increments, plus 8% interest on the entire unpaid principal. The first payment occurs one month after the loan.

Requirements 

1. Prepare Haupt Consulting’s cash budget for January and February.

2. How much cash will Haupt borrow in February if collections from customers that month total \($30,000\) instead of $53,500?