Mike's Motors Corp. manufactures motors for dirt bikes. The company requires a minimum $30,000 cash balance at each month-end. If necessary, the company borrows to meet this requirement, at a cost of 2% interest per month (paid at the end of each month). Any cash balance above $30,000 at month-end is used to repay loans. The cash balance on July 1 is $42,000, and the company has no outstanding loans at that time. Forecasted cash receipts and forecasted cash payments (other than for loan activity) are as follows. July August September Cash Receipts $ 93,000 119,000 158,000 Cash Payments $121,000 107,900 135,400 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.) Answer is complete but not entirely correct. MIKE'S MOTORS CORP. Cash Budget For July, August, and September July August September Beginning cash balance $ 42,000 $ 30.000 $ 30,000 Cash receipts 93,000 119,000 158,000 Total cash available 135,000 149,000 188,000 Cash payments 121,000 107,900 135,400 Interest expense 0 320 Preliminary cash balance 14,000 40,780 52,502 Additional loan (loan 16,000 (11,100) (4,900) repayment) Ending cash balance $ 30,000 $ 29,680 $ 47,602 Loan balance Beginning cash balance X $ 0 $ 16,000 S 4,900 Additional loan (loan 16,000 (11,100) repayment) (4,900) Loan balance, Month-end $ 16,000 S 4,900 S 0 98