Question

Lipman Auto Parts, a family-owned auto parts store, began January with $10,700 cash. Management forecasts that collections from credit customers will be $11,300 in January and $14,800 in February. The store is scheduled to receive $4,000 cash on a business note receivable in January. Projected cash payments include inventory purchases ($12,600 in January and $13,300 in February) and selling and administrative expenses ($3,000 each month). (Click the icon to view additional information about Lipman Auto Parts.) Read the requirements Requirement 1. Prepare Lpman Auto Parts's cash budget for January and February Prepare the cash budget by entering in the labels, then enter in the amounts for January first and February next. (Complete all answer boxes. For entries with a S0 balance, make sure to enter "0 in the appropriate cell. Use parentheses or a minus sign when entering a deficiency) Lipman Auto Parts Cash Budget January and February January February Canh availatie Cash paymert Choose from any st or enter any number in the input fields and men continue so the next queston

Answer 1

Lipman Auto Parts Cash Budget January and February January February Beginning cash balance $ 10,700 $ 10,500 Cash collection from customers $ 11,300 $ 14,800 Cash on business note $ 4,000 $ Cash available 26,000 $ 25,300 Cash payment: Purchase of inventory 12,500 $ 13,300 Operating expense S 3,000 $ 3,000 Total cash payment 15,500 $ 16,300 Ending cash balance before financing 10,500 $ 9,000 Less: Minimum cash balance desired 10,000 $ 10,000 Cash excess 500 $ -1,000 Financing of cash deficency: Borrowing (at the end of month) Principal payment Interest expense (5%) Total effect of financing $ 1,000 Ending cash balance ,500 $ 10,000 1.000