Lally Auto Parts, a family-owned auto parts store, began January with $10,200 cash. Management forecasts that collections from credit customers will be $11,000 in January and $14,900 in February. The store is scheduled to receive $6,000 cash on a business note receivable in January. Projected cash payments include inventory purchases ($12,400 in January and $13,500 in February) and selling and administrative expenses ($3,300 each month). i (Click the icon to view additional information about Lally Auto Parts.) Read the requirements. Cash available Cash payments: Total cash payments Less: Lally Auto Parts Cash Budget January and February January February Lally Auto Parts, a family-owned auto parts store, began January with $10,200 cash. Management forecasts that collections from credit customers will be $11,000 in January and $14,900 in February. The store is scheduled to receive $6,000 cash on a business note receivable in January. Projected cash payments include inventory purchases ($12,400 in January and $13,500 in February) and selling and administrative expenses ($3,300 each month). (Click the icon to view additional information about Lally Auto Parts.) Read the requirements. Cash available Cash payments: Total cash payments Less: Lally Auto Parts More info Lally 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. Lally Auto Parts borrows as little as possible and pays back loans in quarterly installments of $3,000, plus 5% APR interest on the entire unpaid principal. The first payment occurs three months after the loan. Print Done - Lally Auto Parts, a family-owned auto parts store, began January with $10,200 cash. Management forecasts that collections from credit customers will be $11,000 in January and $14,900 in February. The store is scheduled to receive $6,000 cash on a business note receivable in January. Projected cash payments include inventory purchases ($12,400 in January and $13,500 in February) and selling and administrative expenses ($3,300 each month). (Click the icon to view additional information about Lally Auto Parts.) Read the requirements. Cash available Cash payments: Total cash payments Less: Lally Auto Parts Requirements 1. Prepare Lally Auto Parts' cash budget for January and February. 2. How much cash will Lally Auto Parts borrow in February if collections from customers that month total $13,900 instead of $14,900? Print Done -