Deedre Manufacturing has a cash balance of $8,000 on August 1 of the current year. The company's controller forecast the following cash receipts and cash disbursements:

Cash Receipts Cash Payments

August $45,000 $57,000

September $66,000 $67,000 October $70,000 $56,000 Management desires a minimum balance of $8,000 at all times. If necessary, additional financing can be obtained at a 12% interest rate. Interest is paid at the time of repaying loan principal. Note: for calculating interest, if our budget indicates we will need to borrow money, we will plan to do so at the beginning of the month & make any repayments at the end of the month. Use the format below to create a cash balance. Denote if negative. Hint: After your first run-through, be sure to refer to your study guide for verification. An error early on will cause your remaining answers to be incorrect.

August September October

Beginning Cash balance

Add: Cash Receipts

Subtotal

Less: Cash payments

Cash balance before fin/repay

Financing:

Borrowing to maintain min.

Principal repayment

Interest payment

Ending Cash balance

1. What is the net financing for August. (Borrowing would be a positive number (no sign), repayment a negative.)

2. What is the ending Cash balance for August? Denote if negative.

3. What is the beginning cash balance for September? Denote if negative.

4. What is the net financing for September? (borrowing would be a positive number (no sign), repayment a negative.)

5. What was the beginning balance for October? Denote if negative.

6. What is the cash balance before financing/repayment for October? Denote if negative.

7. What is the net financing for October? (Borrowing would be a positive number (no sign), repayment a negative.)

8. What is the ending cash balance for October? Denote if negative