Question

Lipton Auto​ Parts, a​ family-owned auto parts​ store, began January with $ 10 comma 600 cash. Management forecasts that collections from credit customers will be $ 11 comma 800 in January and $ 14 comma 500 in February. The store is scheduled to receive $ 6 comma 000 cash on a business note receivable in January. Projected cash payments include inventory purchases ​($ 13 comma 900 in January and $ 13 comma 100 in February​) and selling and administrative expenses ​($ 3 comma 000 each​ month).

Requirement 1. Prepare

LiptonLipton

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.)

Lipton Auto Parts

Cash Budget

January and February

		January	February
Beginning cash balance		10600	10500
Cash receipts from customers		11800	14500
Cash receipt on note receivable		6000
Cash available		28400	25000
Cash payments:
Purchases of inventory		13900	13100
Selling and administrative expenses		3000	3000
Total cash payments		16900	16100
Ending cash balance before financing
Less:	Minimum cash balance desired
Projected cash excess (deficiency)
Total effects of financing
Ending cash balance

Choose from any list or enter any number in the input fields and then click Check Answer.

Answer 1

LIPTON AUTO PARTS

Cash Budget

Particulars January February Beginning cash balance 10600 11500 Cash receipts from customers 11800 14500 Cash receipt on note receivable 6000 Cash available 28400 26000 less: Purchases of inventory 13900 13100    Selling and administrative expenses 3000 3000 Total cash payments 16900 16100 Ending cash balance before financing 11,500 9900

details about cash excess / minimum balance desired are not given, so remained empty.

Feel free to ask any doubt regarding this.