Exercise 7-23 Manufacturing: Cash budget P2 Mike's Motors Corp. 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 2% interest per month (paid at the end of each month). Any cash balance above $30,000 at month-end is used to repay loans. The cash balance on July 1 is $34,000, and the company has no outstanding loans at that time. Forecasted cash receipts and forecasted cash payments (other than for loan activity) are as follows Prepare a cash budget for July, August, and September Cash Receipts $ 85,000 111,000 Cash Payments $113,000 July August September 99,900 150,000 127,400