Question

E22-34 (similar to) Lipman Auto Parts, a family-owned auto parts store, began January with $10,600 cash. Management forecasts that collections from credit customers will be $11,300 in January and $14,900 in February. The store is scheduled to receive $6,000 cash on a business note receivable in January. Projected cash payments include inventory purchases ($13,200 in January and $13,500 in February) and selling and administrative expenses ($3,200 each month). (Click the icon to view additional information about Lipman Auto Parts.) Read the requirements. minus sign when entering a deficiency) Lipman Auto Parts Cash Budget January and February 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 Projected cash excess (deficiency) Total effects of financing Ending cash balance January February Choose from any list or enter any number in the input fields and then click Check Answer. 1 part remaining More Info Lipman 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. Lipman Auto Parts borrows as little as possible and pays back loans in quarterly installments of $2,000, plus 4% APR interest on the entire unpaid principal. The first payment occurs three months after the loan. Print Done Requirements 1. Prepare Lipman Auto Parts's cash budget for January and February. 2. How much cash will Lipman Auto Parts borrow in February if collections from customers that month total $13,900 instead of $14,900? Print Done Final Check

E22-34 (similar to)
Lipman Auto Parts, a family-owned auto parts store, began January with $10,600 cash. Management forecasts that collections from credit customers will be $11,300 in January and $14,900 in February. The store is scheduled to receive $6,000 cash on a business note receivable in January. Projected cash payments include inventory purchases ($13,200 in January and $13,500 in February) and selling and administrative expenses ($3,200 each month).
(Click the icon to view additional information about Lipman Auto Parts.)
Read the requirements.
minus sign when entering a deficiency)
Lipman Auto Parts
Cash Budget
January and February
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
Projected cash excess (deficiency)
Total effects of financing
Ending cash balance
January
February
Choose from any list or enter any number in the input fields and then click Check Answer.
1 part
remaining
More Info
Lipman 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. Lipman Auto Parts borrows as little as possible and pays back loans in quarterly installments of $2,000, plus 4% APR interest on the entire unpaid principal. The first payment occurs three months after the loan.
Print
Done
Requirements
1. Prepare Lipman Auto Parts's cash budget for January and February.
2. How much cash will Lipman Auto Parts borrow in February if collections from customers that month total $13,900 instead of $14,900?
Print
Done
Final Check

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