7 Karim Corporation requires a minimum $8,500 cash balance. Loans taken to meet this requirement cost 2% interest per month (paid at the end of each month). Any preliminary cash balance above $8,500 is used to repay loans at month-end. The cash balance on July 1 is $8,900, 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. 2. points Cash receipts Cash payments July $ 24,500 28,750 August $ 32,500 30,500 September $ 40,500 32,500 eBook Hint 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.) Print KARIM CORPORATION Cash Budget July $ 8,900 $ 24,500 33,400 Beginning cash balance Add: Cash receipts Total cash available August September 8,500 $ 8,500 32,500 40,500 41,000 49,000 28,750 32,500 39 All items excluding interest Interest on loan Total cash payments Preliminary cash balance Loan activity Additional loan (loan repayment) Ending cash balance 30,500 77 30,577 10,423 $ 28,750 4,650 $ 32,539 16,461 $ 3,850 8,500 $ 1,923 8,500 1,927 14,534 $ $ Loan balance $ 1,927 Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month 0 $ 3,850 3,850 $ 3,850 $ 1,923 1,927 $ 1,927 $ 0