Question
Exercise 22-20 Cash budget LO P2 Karim Corp. requires a minimum $8,000 cash balance. Loans taken to meet this requirement cost 1% interest per month
Exercise 22-20 Cash budget LO P2
Karim Corp. requires a minimum $8,000 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 July 1 is $8,400, 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.
| July | August | September | |||||||
| Cash receipts | $ | 20,000 | $ | 26,000 | $ | 40,000 | |||
| Cash payments | 28,000 | 30,000 | 22,000 | ||||||
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.)
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Financial Accounting
Authors: Charles Horngren, William Thomas, Walter Harrison, Greg Berberich, Catherine Seguin
5th Canadian edition
133472264, 978-0133446265, 133446263, 978-0133472264
