Fortner Manufacturing has a cash balance of $10,000 on August 1 of the current year. The company's controller forecast the following cash receipts and cash disbursements for the upcoming two months of activity:

	Cash Receipts				Cash Payments
August	$	54,000			$	68,000
September		75,000				65,000

Management desires to maintain a minimum cash balance of $10,000 at all times. If necessary, additional financing can be obtained in $1,000 multiples at a 12% interest rate. All borrowings are made at the beginning of the month; debt retirement, on the other hand, occurs at the end of the month. Interest is paid at the time of repaying loan principal and is computed on the portion of debt repaid.

Required:

1. Determine the ending cash balance in August both before and after any necessary financing or debt retirement.
2. Determine the ending cash balance in September both before and after any necessary financing or debt retirement.

1.

Beginning Cash balance
Subtotal
Cash balance before financing/retirement
Financing:
Borrowing to maintain minimum
Ending cash balance

2.

Beginning cash balance
Subtotal
Cash balance before financing/retirement
Financing:
Principal repayment
Interest payment
Ending cash balance