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Requirements 1. Prepare Daniels Consultings cash budget for January and February 2013. 2. How much cash will Daniels borrow in February if cash receipts from

Requirements
1. Prepare Daniels Consultings cash budget for January and February 2013.
2. How much cash will Daniels borrow in February if cash receipts from customers that month total $30,000 instead of $55,000?
NOTE: Some cells that need to be completed have not been shaded green. You will have to work a little harder to determine what needs completed.
Solution:
Requirement 1
DANIELS CONSULTING, INC.
Cash Budget
For the Two Months Ended February 28, 2018
January February Total
Beginning Cash Balance
Requirement 2
February Revised
Put narrative answer below

Assume Daniels Consulting began January with $12,000 cash. Management forecasts that cash receipts from credit customers will be $52,000 in January and $55,000 in February. Projected cash payments include equipment purchases ($16,000 each month). Daniels's bank requires a $23,000 minimum balance in the firm's checking account. At the end of any month when the account balance falls below $23,000, the bank automatically extends credit to the firm in multiples of $5,000. Daniels borrows as little as possible and pays back loans each month in $1,000 increments, plus 12% interest on the entire unpaid principal. The first payment occurs one month after the loan.

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