11)

Karim Corp. requires a minimum $8,400 cash balance. If necessary, loans are taken to meet this requirement at a cost of 1% interest per month (paid monthly). Any excess cash is used to repay loans at month-end. The cash balance on July 1 is $8,800 and the company has no outstanding loans. Forecasted cash receipts (other than for loans received) and forecasted cash payments (other than for loan or interest payments) follow:

	July	August	September
Cash receipts	$	24,400	$	32,400	$	40,400
Cash disbursements		28,600		30,400		32,400

Prepare a cash budget for July, August, and September.