Exercise 22-23 (Algo) Manufacturing: Cash budget LO P2 Motors Corporation manufactures motors for dirt bikes. The company requires a minimum $30,000 cash balance at each month- end. If necessary, the company borrows to meet this requirement at a cost of 3% interest per month (paid at the end of each month). Any preliminary cash balance above $30,000 at month-end is used to repay loans. The cash balance on July 1 is $33,000, and the company has no outstanding loans. Budgeted cash receipts and budgeted cash payments (other than for interest on the loan and loan activity) follow. Cash receipts Cash payments July $ 84,000 112,000 August September $ 110,000 $ 149,000 98,900 126,400 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.) MOTORS CORPORATION Cash Budget Beginning cash balance Add: Cash receipts Total cash available July August September $ 33,000 $ 30,000 $ 30,000 84,000 110,000 149,000 117,000 140,000 179,000 Less: Cash payments for All items excluding interest 112,000 98,900 126,400 Interest on loan 0 (750) (395) Total cash payments 112,000 98,150 126,006 Preliminary cash balance 5,000 41,850 52,994 Additional loan (loan repayment) 25,000 (11,850) (13,150) $ 30,000 $ 30,000 $ 39,844 Ending cash balance Loan activity Loan balance, beginning of Month $ 0 $ 25,000 $ 13,150 Additional loan (loan repayment) Loan balance, end of month 25,000 $ 25,000 *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted. (11,850) (13,150) $ 13,150 $ 0