Northem Auto Parts, a tamiy-owned auto parts store, began January with $10.500 c

Question

Northem Auto Parts, a tamiy-owned auto parts store, began January with $10.500 cash. Management torecests thast collections from aredt ustomers wi $15,800 in January and $15.300 in February. The stone is scheduied to eceive 56.500 (Click the icon to view additional information about Northem Auto Parts Read the teauirements. Requirement 1. Prepare Northem Auto Parts's cash budget for Januny and Febary Prepare the cash budget by entering in the lubels, then enter in the amounts for Northen Aute Parts Cash Budget More Into JanuaryFabruary Northem Auto Parts's bank requires a $10,000 minimum balance in the store's checking account $10 000, he bank aulomaicaly extends oredit to the store in rsutiples of $1,000 the account balance The rstalments of $1.00, p. S 5% APR interest rts enre urpaid prin- st payment ocours ee months afher the loan Cash avaliable Cash payments Print Done Total cash payments Choose from any list or enter any number in the input fields and then continue to the next question. 833 2 3 4 6 0 tab

Explanation / Answer

Northern Auto Parts Cash Budget January and February January February Opening Cash Balance 10500 11500 Add: Collections from Customers 11600 15300 Add: Cash on a Business Note Recievable 5500 Cash Available 27600 26800 Cash Payments: Payments for Inventory Purchases 13400 15100 Payments for S&A Expense 2700 2700 Total Cash Payments 16100 17800 Excess/(Deficit) in Cash 11500 9000 Less: Loan Installment 0 0 Net Cash Balance 11500 9000 Add: Borrowings to be made 0 1000 Closing Cash Balance 11500 10000 In Feb: Excess/(Deficit) in Cash 9000 Minimum Cash Balance 10000 Borrowings Required 1000 (10000-9000)

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