The following budget estimates have been prepared by Reem Company:

	Cash Receipts	Cash Payments
May	$120,000	$150,000
June	110,300	150,000

The company likes to maintain a minimum cash balance of $40,000.

Any excess cash is invested in a money market account earning 9 percent compounded monthly. Interest is reinvested in the money market account. Any cash deficiencies are covered by a withdrawal from the money market account. If additional cash is needed, the company has a line of credit at 12 percent interest with the local bank. Interest is paid monthly.

Assume a cash balance on May 1 of $40,000, a money market account balance of $0, and a credit line loan balance of $0.

Required:

Prepare a cash budget for May and June.

Reem Company

Cash Budget for May-June 2019

Statements	May	June