Karim Corp, requires a minimum $8,000 cash balance. Loans taken to meet this requirement cost 19 interest per month (paid monthly). Any excess cash is used to repay loans at month end. The cash balance on July 1 is $8.400, and the company has no outstanding loans Forecasted cash receipts (other than for loans received) and forecasted cash payments (other than for loan or interest payments) follow Cash receipts Cash payments July $20,000 28,000 August $26,000 30.000 September $40,000 22,000 KARIM CORP. Cash Budget For July, August, and September July August September Beginning cash balance $ 8,400 $ 8,000 $ 8,000 Cash receipts 20,000 26,000 40,000 Total cash available 28,400 34,000 48,000 Cash payments 28,000 30,000 22,000 Interest on bank loan 0 152 Preliminary cash balance $ 400 Additional loan (loan repayment) 7,600 Ending cash balance $ 8,000 $ 8,000 Loan balance $ 0 $ 0 Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month $ 0