Question Help Northeast Auto Parts, a family-owned auto parts store, began January with $10,800 cash. Management forecasts that collections from credit customers will be $11,400 in January and $14,900 in February. The store is scheduled to receive $4,000 cash on a business note receivable in January. Projected cash payments include inventory purchases ($12,800 in January and $12,800 in February) and selling and administrative expenses ($2,900 each month). (Click the icon to view additional information about Northeast Auto Parts.) Read the requirements. Beginning cash balance Cash receipts from customers Cash receipt on note receivable Cash available Cash payments: Purchases of inventory Selling and administrative expenses Total cash payments Ending cash balance before financing Less: Minimum cash balance desired January 10800 February 10700 More Info Northeast 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. Northeast Auto Parts borrows as little as possible and pays back loans in quarterly installments of $2,500, plus 4% APR interest on the entire unpaid principal. The first payment occurs three months after the loan. Projected cash excess (deficiency) Total effects of financing Ending cash balance Requirement 2. How much cash will Northeast Auto Parts borrow in February if collections from customers that month total $13,900 instead of $14,900? If cash collections in February are $13,900 instead of $14,900, the company will borrow Choose from any list or enter any number in the input fields and then continue to the next question. Print Done *