Foyert Corp. requires a minimum $30,000 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 October 1 is $30,000, and the company has an outstanding loan of $10,000. Forecasted cash receipts (other than for loans received) and forecasted cash payments (other than for loan or interest payments) follow.

\fFOYERT CORP. Cash Budget For October, November, and December October November December Beginning cash balance 30,000 30,000 30,000 Cash receipts 110,000 80,000 100,000 Total cash available 140,000 110,000 130,000 Cash payments 120,000 75,000 80,000 Interest on bank loan Preliminary cash balance Additional loan (loan repayment) Ending cash balance Loan balance Loan balance - Beginning of month 10,000 Additional loan (loan repayment) 10,100 Loan balance - End of month