Foyert 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 October 1 is $8,000 and the company has an outstanding loan of $4,000. Forecasted cash receipts (other than for loans received) and forecasted cash payments (other than for loan or interest payments) follow. October November December Cash receipts $ 24,000 $ 18,000 $ 22,000 Cash payments 27,000 17,000 14,000

FOYERT CORP. Cash Budget For October, November, and December October November December Beginning cash balance $ 8,000 Total cash available Preliminary cash balance Ending cash balance Loan balance Loan balance - Beginning of month $ 4,000 Additional loan (loan repayment) Loan balance - End of month