Northeast 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 $6,000 cash on a business note receivable in January. Projected cash payments include inventory purchases ($13,800 in January and $14,000 in February) and selling and administrative expenses ($2,800 each month)

Requirement 1. Prepare Northeast Auto Partss cash budget for January and February.

Prepare the cash budget by entering in the labels, the enter in the amount for January first and February 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.)

More information: Lim Auto Partss bank requires a $10,000 minimum balance in the stores 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. Lim Auto Parts borrows as little as possible and pays back loans in quarterly installments of $2,500, plus 3% APR interest on the entire unpaid principal. The first payment occurs three month after the loan.

January February Beginning cash balance Cash receipts from customers Cash receipt on note receivable /? Cash available Cash payments: Purchases of inventory 1? | Selling and administrative expenses Total cash payments Ending cash balance before financing ? Less: Minimum cash balance desired /? Projected cash excess (deficiency) Total effects of financing Ending cash balance