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4 Karim Corporation requires a minimum $9,600 cash balance Loans taken to meet this requirement cost 1% interest per month (paid at the end of
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Karim Corporation requires a minimum $9,600 cash balance Loans taken to meet this requirement cost 1% interest per month (paid at the end of each month). Any preliminary cash balance above $9,600 is used to repay loans at month-end. The cash balance on July 11 is $10,000, and the company has no outstanding loans. Budgeted cash receipts (other than for loans received) and budgeted cash payments (other than for loan or interest payments) follow. July $ 25,600 August $33,600 September $ 41,600 Cash receipts Cash payments 30,400 31,600 33,600 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 doller.) KARIM CORP. Cash Budget August September Beginning cash balance $ Total cash available Total cash payments Preliminary cash balance Loan activity Ending cash balance Loan balance Loan balance-Beginning of month Additional loan (loan repayment) Loan balance End of month i July 10,000 0 0 Step by Step Solution
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