Ling Auto Parts, a family-owned auto parts store, began January with $10,800 cash. Management forecasts that collections from credit customers will be $11,300 in January and $14,700 in February. The store is scheduled to receive $6,500 cash on a business note receivable in January. Projected cash payments include inventory purchases ($14,700 in January and $13,800 in February) and selling and administrative expenses (52,900 each month). i (Click the icon to view additional information about Ling Auto Parts.) Read the requirements Cash Budget More Info - X January and February January February Beginning cash balance $ 10.800 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 Cash receipts from customers 11,300 14,700 $10,000, the bank automatically extends credit to the store in multiples of $1,000. 6,500 Cash receipt on note receivable 0 Ling Auto Parts borrows as little as possible and pays back loans in quarterly installments of $1,500, plus 5% APR interest on the entire unpaid principal. The Cash available 28,600 first payment occurs three months after the loan. Cash payments: Purchases of inventory 14,700 Print Done 13,800 2.900 Selling and administrative expenses 2.900 17,600 16,700 Total cash payments Ending cash balance before financing Less: Minimum cash balance desired Projected cash excess (deficiency) Total effects of financing (10,000) (10,000) Ending cash balance