Capital expenditures budget calls for the cash purchase of $$130,000$ of store fixtures. The fixture were purchased on Oct $1,$ have a useful life of $10$ yrs and a salvage value of $$10,000$

Hampton has a line of cridt of $500,000$$ from WECU under which it can borrow or repay principle in increment of $$1,000$ at the end of each month as needed.

Hampton desires to keep an ending cash balance of at least $10,000$ each month. The Bank charges an interest rate of $12\%$ a year or $1\%$ a month.

Hampton Hams Company

Cash Budget