Chegg Accounting Question $7$

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Laughton Auto Parts' bank requires a $$10,000$ minimum balance in the store's checking account. At the end of any month when the account balance falls below $$10,000,$ the bank automatically extends credit to the store in multiples of $$1,000.$ Laughton Auto Parts borrows as little as possible and pays back loans in quarterly installments of $$3,000,$ plus $4\%$ APR interest on the entire unpaid principal. The first payment occurs three months after the loan.

Requiremepts

Prepare Laughton Auto Parts' cash budget for January and February.

How much cash will Laughton Auto Parts borrow in February if collections from customers that month total $$13,700$ instead of $$14,700?$

Laughton Auto Parts, a family$-$owned auto parts store, began January with $$10,000$ cash. Management forecasts that collections from credit customers will be $$11,700$ in January and $$14,700$ in February. The store is scheduled to receive $$5,500$ cash on a business note receivable in January. Projected cash payments include inventory purchases $($ $$13,800$ in January and $$12,800$ in February$)$ and selling and administrative expenses $($$$2,900$ each month$).$

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Requirement $1.$ Prepare Laughton Auto Parts' cash budget for January and February.

Prepare the cash budget by entering in the labels, then enter in the amounts for January first and February next. $($Complide all input ficids. For entres with a $$0$ balance, make sure to enter $"0"$ in the appropriate cell. Use parentheses or a minus sign wher entering a deficiency$)$