Exercise 20-21 Cash budget LO P2 Foyert Corp. requires a minimum $6,800 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 $6,800 and the company has an outstanding loan of $2,800. 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 $22,800 25,200 November $16,800 15,800 December $20,800 15, 200 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 $ 6,800 December Total cash available Preliminary cash balance Ending cash balance Loan balance $ 2,800 Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month Exercise 20-27A Merchandising: Computing budgeted cash payments for purchases LO P4 Hardy Company's cost of goods sold is consistently 60% of sales. The company plans ending merchandise inventory for each month equal to 30% of the next month's budgeted cost of goods sold. All merchandise is purchased on credit, and 50% of the purchases made during a month is paid for in that month. Another 45% is paid for during the first month after purchase, and the remaining 5% is paid for during the second month after purchase. Expected sales are August (actual), $375,000; September (actual), $410,000; October (estimated), $340,000; and November (estimated), $380,000. Use this information to determine October's expected cash payments for purchases. Calculate Monthly Purchases: August September October November Budgeted ending inventory Required available inventory Required purchases Calculate Payments Made for Inventory: Purchases paid in September October Purchases August After October August purchases September purchases October purchases Determine October's Expected Cash Payments for Purchases. October's expected cash payments for purchases