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Exercise 2 0 - 2 1 ( Algo ) Cash budget LO P 2 Foyert Corporation requires a minimum $ 7 , 8 0 0

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Exercise 20-21(Algo) Cash budget LO P2
Foyert Corporation requires a minimum $7,800 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 $7,800 is used to repay loans at month-end. The cash balance on October 1 is $7,800, and the company has an outstanding loan of $3,800. Budgeted cash receipts (other than for loans received) and budgeted cash payments (other than for loan or interest payments) follow.
\table[[,October,November,December],[Cash receipts,$23,800,$17,800,$21,800
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