exercise 20-21 cash budget LO P2 Foyert Corp. requires a minimum $7000 cash balanceLoans taken to meet this requirement cost 1% interest per month (paid monthly Any excess cash used to repay loans at month-end. The cash balance on October $7,000 and the company an outstanding $3,000. Forecasted cash receipts (other than for loans received) and forecasted cash payments (other than for loan interest payments) follow

Exercise 20-21 Cash budget LO P2 Foyert Corp. requires a minimum $7,000 cash balance. Loans taken to meet this requirement cost 1% interest per month (paid monthly Any excess cash is used to repay loans at month-end. The cash balance on October 1 is $7,000 and the company has an outstanding loan of $3,000. 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 $23,000 25,500 November $17,000 16,000 December $21,000 15.000 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 Beginning cash balance $ 7,000 $ 7,000 Cash receipts 23.000 17.000 Total cash available 30.000 24.000 Cash payments (25,500 (16,000) Interest on bank loan (30) Preliminary cash balance Additional loan (loan repayment) Ending cash balance December $ 7,000 21.000 28000 (15,000)