Edge Soccer Programs Cash Budget For the Two Months Ended February 28 January February Total Beginning cash balance Cash receipts from customers $10,500 $11,500 $10,500 $11,000 $15.200 $26,200 Collection of note receivable $8,500 $0 $8,500 Cash available $30,000 $26.700 $45,200 Cash payments: Equipment purchases $15,600 $14,800 $30,400 Selling and administrative expenses $2,900 $2,900 $5,800 Total cash payments $18,500 $17,700 $36,200 Ending cash balance before financing $11,500 $9.000 $9,000 Minimum cash balance desired $10,000 $10,000 $10.000 Projected cash excess (deficiency) Financing: Borrowing Repayment of principal Total effects of financing Ending cash balance $1,500 -$1,000 -$1,000 $0 $1,000 $1,000 $0 $0 $0 $0 $1,000 $1,000 $11,500 $10,000 $10,000 Budget in Service Company (Cash Budget) Edge Soccer Program (Edge) began the year with a cash balance of $10,500. The budget forecasts that collections from customers owed to the company will be $11,000 in January and $15,200 in February. The soccer program is also supposed to receive $8,500 on a note receivable from a soccer club that owes Edge for training players in January. Edge plans to purchase soccer equipment in January and February with cash. The budgeted amounts of the purchases are $15,600 in January and $14,800 in February. Edge's operating costs is $2,900 per month. Edge must maintain a minimum cash balance of $10,000 in their back account at all times. If the amount in their bank account falls below $10,000, then the bank extends credit to Edge immediately in multiples of $1,000. Edge pays back any amounts borrowed each quarter in payments of $2,000 plus 4% interest. The first payment occurs three (3) months after the bank has extended Edge the credit. Requirement Prepare a cash budget for January and February using the Excel template provided in the assignment instructions.