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 $1,500, plus 3% APR interest on the entire unpaid principal. The first payment occurs three months after the loan. Lally Auto Parts, a family-owned auto parts store, began January with $10,700 cash. Management forecasts that collections from credit customers will be $11,700 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 ($14,500 in January and $12,700 in February) and selling and administrative expenses ($3,400 each month). (Click the icon to view additional information about Lally Auto Parts.) Read the reguirements. 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