Please help me solve the following question with steps on how to do it. I already have the answers, I just need someone to explain in clear steps on how to do this problem.

1) Janus Industries has budgeted the following information for January:

Cash Receipts $40,000 Beginning Cash Balance $10,000

Cash Payments $48,000 Desired Ending Cash Balance $ 7,000

If there is a cash shortage, the company borrows money from the bank. beginning of the month in $1,000 increments. Interest is paid monthly on the first day of the following month. The interest rate is 1% per month. The company had no debt before January 1st.

A) The shortage or surplus of cash before considering cash borrowed or interest payments in January would be ?

Ans: $2000 shortage

B) The ending cash balance on January 31 would be ?

Ans: $7000

C) The amount of interest paid in February would be ?

Ans: $50