Exercise 20-20 Cash budget LO P2 Karim Corp. requires a minimum $9,300 cash balance. If necessary, loans are taken to meet this requirement at a cost of 2% Interest per month (paid monthly). Any excess cash is used to repay loans at month-end. The cash balance on July 1 is $9.700 and the company has no outstanding loans. Forecasted cash receipts (other than for loans received) and forecasted cash payments (other than for loan or interest payments) follow Cash receipts Cash payments July $25,300 29,95e August $33,300 31, 3e0 September $41,300 33,300 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.) Answer is complete but not entirely correct. MARIM CORP. Cash Budget For July, August, and September July August September Beginning cash balance $ 9,700 S (9,700) S (9,700) Cash receipts 25,300 33,300 41,300 Total cash available 35,000 Cash payments (29,950) (31,300) (33,300) Interest on bank loan 00 (93) (55) Preliminary cash balance $ 5,050 $ (11,607) $ (17,645) Additional loan (loan repayment) (4,650) 1,907 2,743 Ending cash balance $ (9,700) $ (9,700) $ (14,902) Loan balance Loan balance - Beginning of month $ 0 $ 2,743) Additional loan (loan repayment) (4,650) Loan balance - End of month $ 2,743) $ 0