Assume Piedmont Computer Co. began January with $15,000 cash.

Requirements - X 1. Prepare Piedmont Computer Company's cash budget for January and February, 2020. 2. How much cash will Piedmont Computer Company borrow in February if cash receipts from customers that month total $41,000 instead of $51,000? Print Done C More Info Management forecasts that cash receipts from credit customers will be $48,000 in January and $51,000 in February. Projected cash payments include equipment purchases ($20,000 in January and $41,000 in February) and selling and administrative expenses ($2,000 each month). Piedmont Computer Company's bank requires a $26,000 minimum balance in the firm's checking account. At the end of any month when the account balance falls below $26,000, the bank automatically extends credit to the firm in multiples of $5,000. Piedmont Computer Company borrows as little as possible and pays back loans each month in $1,000 increments, plus 12% interest on the entire unpaid principal. The first payment occurs one month after the loan. Print Done Piedmont Computer Company Cash Budget Two Months Ended February 28, 2020 January Beginning cash balance Cash receipts Cash available Cash payments: Capital expenditures Selling and administrative expenses Interest expense Total cash payments Ending cash balance before fidnancing Minimum cash balance desired