Question
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
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. |
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Managerial Accounting
Authors: Stacey WhitecottonRobert LibbyRobert Libby, Patricia LibbyRobert Libby, Fred Phillips
1st Edition
0078110777, 9780078110771
