Lipton Auto Parts, a family-owned auto parts store, began January with $ 10 comma 600 cash. Management forecasts that collections from credit customers will be $ 11 comma 800 in January and $ 14 comma 500 in February. The store is scheduled to receive $ 6 comma 000 cash on a business note receivable in January. Projected cash payments include inventory purchases ($ 13 comma 900 in January and $ 13 comma 100 in February) and selling and administrative expenses ($ 3 comma 000 each month).

Requirement 1. Prepare

LiptonLipton

Auto Parts's cash budget for

JanuaryJanuary

and

FebruaryFebruary.

Prepare the cash budget by entering in the labels, then enter in the amounts for

JanuaryJanuary

first and

FebruaryFebruary

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.)

Lipton Auto Parts

Cash Budget

January and February

		January	February
Beginning cash balance		10600	10500
Cash receipts from customers		11800	14500
Cash receipt on note receivable		6000
Cash available		28400	25000
Cash payments:
Purchases of inventory		13900	13100
Selling and administrative expenses		3000	3000
Total cash payments		16900	16100
Ending cash balance before financing
Less:	Minimum cash balance desired
Projected cash excess (deficiency)
Total effects of financing
Ending cash balance

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