Karim Corp. requires a minimum $9,200 cash balance. If necessary, loans are taken to meet this requirement at a cost of 1% interest per month (paid monthly). Any excess cash is used to repay loans at month-end. The cash balance on July 1 is $9,600 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.

	July	August	September
Cash Receipts	$ 25,200	$ 33,200	$ 41,200
Cash Payments	$ 29,800	$ 31,200	$ 33,200

Prepare a cash budget for July, August, and September. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Round your final answers to the nearest whole dollar.)

KARIM CORP.

Cash Budget

For July, August, and September

	July	August	September
Beginning cash balance	$ 9,600	$ 9,200	$ 9,200
Cash Receipts	25,200	33,200	41,200
Total cash available	34,800	42,400	50,400
Cash payments	(29,800)	(31,200)	(33,200)
Interest on bank loans
Preliminary cash balance
Additional loan (loan repayment)

Ending cash balance

9,200

9,200

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Loan balance

Loan balance - Beginning of month	$	$	$
Additional loan (loan repayment)
Loan balance - End of month

NOTE: Apologies for the formatting. I created tables instead of copy and pasting from the program.