January Ling Auto Parts, a family-owned auto parts store, began January with $10,900 cash. Management forecasts that collections from credit customers will be $11,100 in January and $15,300 in February. The store is scheduled to receive $6,000 cash on a business note receivable in January. Projected cash payments include inventory purchases ($14,000 in January and $13,800 in February) and selling and administrative expenses ($3,000 each month) (Click the icon to view additional information about Ling Auto Parts.) Read the requirements. Requirement 1. Prepare Ling Auto Parts s casti puugel vor January anu repruary. Prepare the cash budget by entering in the labels, then enter in the amounts for January first and February next. (Complete all answer boxes. For entries with a $0 balance, make sure to enter "0" in the appropriate cell. Use parentheses or a minus sign when entering a deficiency.) Ling Auto Parts More Info X Cash Budget January and February February Ling Auto Parts's 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 Beginning cash balance $ 10,900 $ 11,000 $10,000, the bank automatically extends credit to the store in multiples of $1,000 Cash receipts from customers 11,100 15,300 Ling Auto Parts borrows as little as possible and pays back loans in quarterly installments of $3,000, plus 6% APR interest on the entire unpaid principal. The Cash receipt on note receivable 6,000 0 first payment occurs three months after the loan. Cash available $ 28,000 $ 26,300 Cash payments: Print Done Purchases of inventory 14,000 13,800 Requirements Selling and administrative expenses 3,000 3,000 17,000 16,800 Total cash payments Ending cash balance before financing $ 11,000 $ 9,500 1. Prepare Ling Auto Parts's cash budget for January and February. 2. How much cash will Ling Auto Parts borrow in February if collections from Less: Minimum cash balance desired (10,000) (10,000) customers that month total $14,300 instead of $15,300? Projected cash excess (deficiency) $ 1,000 $ Total effects of financing 0 1,000 Print Done 11,000 $ 10,500 Ending cash balance (500) Requirement 2. How much cash will Ling Auto Parts borrow in February if collections from customers that month total $14,300 instead of $15,300? If cash collections in February are $14,300 instead of $15,300, the company will borrow $