Edge Soccer Program $($Edge$)$ began the year with a cash balance of $$10,500.$ The budget forecasts that collections from customers owed to the company will be $$11,000$ in January and $$15,200$ in February. The soccer program is also supposed to receive $$8,500$ in January on a note receivable from a soccer club that owes Edge for training.

Edge plans to purchase soccer equipment in January and February with cash. The budgeted amounts of the purchases are $$15,600$ in January and $$14,800$ in February. Operating costs for the business is $$2900$ per month.

Edge must maintain a minimum cash balance of $$10,000$ in their bank account at all times. If the amount in the bank account falls below $$10,000,$ then bank extends credit to Edge immediately in multiples of $$1000.$ Edge pays back any amounts borrowed each quarter in payments of $$2000$ plus $4\%$ interest. The first payment occurs three $(3)$ months after the bank has extended edge credit.

Requirement

Prepare a cash budget for January and February.

Cash Budget

For the Two Months Ended February $28$ : $$

January February Total

Beginning cash balance $$$$-$$$-$

Cash receipts from customers $$$$-$$$-$

Collection of note receivable $$$$-$

Cash available $$$$-$$$-$$$-$

Cash payments: $$

Equipment purchases $$$$-$

Selling and administrative expenses $$$$-$

Total cash payments $$$$-$$$-$$$-$

Ending cash balance before financing $$$$-$$$-$$$-$

Minimum cash balance desired $$$$-$$$-$

Projected cash excess $($deficiency$)$$$-$$$-$$$-$

Financing:$$

Borrowing $$$$-$

Total effects of financing $$$$-$$$-$$$-$

Ending cash balance $$$$-$$$-$$$-$