Question
20-2 Karim Corp. requires a minimum $8,900 cash balance. If necessary, loans are taken to meet this requirement at a cost of 2% interest per
20-2
Karim Corp. requires a minimum $8,900 cash balance. If necessary, loans are taken to meet this requirement at a cost of 2% interest per month (paid monthly). Any excess cash is used to repay loans at month-end. The cash balance on July 1 is $9,300 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.
Prepare a cash budget for July, August, and September. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Round your final answers to the nearest whole dollar.)
July ember $40,900 32,900 August Sept Cash receipts Cash payments $24,900 $32,90e 29,350 30,900 KARIM CORP Cash Budget For July, August, and September July August September Beginning cash balance 9,300 Total cash available Preliminary cash balance Ending cash balance Loan balance Loan balance Beginning of month Additional loan (loan repayment) Loan balance - End of monthStep by Step Solution
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