Karim Corp. requires a minimum $9,400 cash balance. If necessary, loans are taken to meet this requirement at a cost of 1% interest per month
Karim Corp. requires a minimum $9,400 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 $9,800 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 | $ | 25,400 | $ | 33,400 | $ | 41,400 | |||
| Cash payments | 30,100 | 31,400 | 33,400 | ||||||
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.)
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Step by Step Solution
There are 3 Steps involved in it
Step: 1
To prepare the cash budget for July August and September for Karim Corporation we need to follow these steps Step 1 Determine Total Cash Available For ...
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Step: 2
Step: 3
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Authors: Tim Asikin, Steve Asikin
1st Edition
1078350590, 978-1078350594
