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Exercise 22-20 (Algo) Cash budget LO P2 Karim Corporation requires a minimum $9,200 cash balance. Loans taken to meet this requirement cost 1% interest per
Exercise 22-20 (Algo) Cash budget LO P2
Karim Corporation requires a minimum $9,200 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 $9,200 is used to repay loans at month-end. The cash balance on July 1 is $9,600, and the company has no outstanding loans. Budgeted cash receipts (other than for loans received) and budgeted cash payments (other than for loan or interest payments) follow.
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