lan operates an automobile repair shop and he has the opportunity to buy an additional machine, which he needs to continue servicing his increasing customer base, at a bargain price of $6,200 if he purchases it by the end of February. In order to meet payroll and other expenses, lan wants to maintain a $5,000 cash balance. He is trying to determine if he needs to go to the bank for a loan. His accountant has projected the following estimates for the month of February: Cash balance, February 1 Expected cash collections from customers Expected repair sales in February Expected February parts purchases Expected payments to suppliers for January parts purchases Overhead (includes machinery depreciation of $2,000) Direct labor Administrative expenses $ 4,200 $29.500 $ 42,575 $ 22.125 $ 15.100 $ 3,450 $ 12,800 $ 1,800 Labor, overhead and administrative expenses are pald in the month incurred. Parts are only purchased as needed to repair vehicles. 100% of the parts purchases are paid in the month following the purchase. a. Prepare a cash budget for the month of February. (Deductible values and negative values should be indicated with minus sign.) February Beginning cash balance Plus: Budgeted cash receipts Less: Budgeted cash payments for Administrative expenses Overhead Direct labor Payment to suppliers Purchases of machine Cash balance before financing b. What is the minimum amount that lan will need sign.) borrow? (Deductible values and negative values should be indicated with minus Cash borrowed or (repaid) Cash balance before financing Ending cash balance 5,000 c. Prepare a budgeted income statement for the month of February February Budgeted sales Less: Budgeted cost of parts Budgeted overhead Budgeted direct labor Budgeted gross margin Less: Budgeted administrative expenses Budgeted operating income