Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Exercise 20-21 Cash budget LO P2 Foyert Corp. requires a minimum $6,300 cash balance. Loans taken to meet this requirement cost 2% Interest per month
Exercise 20-21 Cash budget LO P2 Foyert Corp. requires a minimum $6,300 cash balance. Loans taken to meet this requirement cost 2% Interest per month (paid monthly). Any excess cash is used to repay loans at month-end. The cash balance on October 1 is $6,300 and the company has an outstanding loan of $2,300. Forecasted cash receipts (other than for loans received) and forecasted cash payments (other than for loan or interest payments) follow. Cash receipts Cash payments October $22,300 24,450 November $16,300 15,300 December $20,300 15,700 Prepare a cash budget for October, November, and December (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Round your final answers to the nearest whole dollar.) FOYERT CORP Cash Budget For October, November, and December October November December Beginning cash balance $ 6,300 $ 6,300 $ 6,300 Cash receipts 22,300 16,300 20,300 Total cash available 28,600 22,600 26,600 Cash payments 24,450 15,300 15,700 Interest on bank loan Preliminary cash balance Additional loan (loan repayment) Prepare a cash budget for October, November, and December (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Round your final answers to the nearest whole dollar.) FOYERT CORP. Cash Budget For October, November, and December October November December Beginning cash balance $ 6,300 $ 6,300 $ 6,300 Cash receipts 22,300 16,300 20,300 Total cash available 28,600 22,600 26,600 Cash payments 24.450 15,300 15,700 Interest on bank loan Preliminary cash balance Additional loan (loan repayment) Ending cash balance es Loan balance $ 2,300 Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started