Elm Valley Spas is required by their bank to have a minimum of $10,000 in their account at all times. On June 30th the cash balance was $11,000 and there was no short term loan payable. If borrowing is required, it bears interest at 6% per anum calculated on the month end balance from the previous month. Complete the cash budget for July and August and determine the outstanding short term loan balance at August 31st. July August Fixed operating expenses 10,000 10,000 Variable operating expenses 6,000 2,000 Short term interest Total Cash payments Total Cash receipts July August 13,000 19,000 I FI T: B I IEE P&