Northeast Auto Parts, a family-owned auto parts store, began January with $ 10,600 cash. Management forecasts that collections from credit customers will be $ 11,900 in January and $ 14,500 in February. The store is scheduled to receive $ 5000 cash on a business note receivable in January. Projected cash payments include inventory purchases ($ 13,200 in January and $ 13,200 in February) and selling and administrative expenses ($ 3300 each month). LOADING...(Click the icon to view additional information about Northeast Auto Parts.)

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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$10,000, the bank automatically extends credit to the store in multiples of $1,000.

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Auto Parts borrows as little as possible and pays back loans in quarterly installments of

$1,500,

plus

33%

APR interest on the entire unpaid principal. The first payment occurs three months after the loan.

Requirement 1. Prepare

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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.)

Northeast Auto Parts

Cash Budget

January and February

January

February

Beginning cash balance

Cash available

Cash payments:

Total cash payments

Less:

Ending cash balance