Question $4$

Not yet graded $/0$ pts

Azul Corporation requires a minimum $$6,400$ cash balance. Loans taken to meet this requirement cost $1\%$ interest per month $($paid at the end of each month$).$ Any preliminary cash balance above $$6,400$ is used to repay loans at month$-$end. The cash balance on October $1$ is $$6,400,$ and the company has an outstanding loan of $$2,400.$ Budgeted cash receipts $($other than for loans received$)$ and budgeted cash payments $($other than for loan or interest payments$)$ follow.

October November December

Cash receipts $$22,400$$$16,400$$$20,400$

Cash payments $24,600,15,400,15,600$

Create a cash budget for October, November, December and the quarter.