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Foyert Corp. requires a minimum $6,700 cash balance. If necessary, loans are taken to meet...

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Accounting

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Foyert Corp. requires a minimum $6,700 cash balance. If necessary, loans are taken to meet this requirement at a cost of 2% interest per month (paid monthly). Any excess cash is used to repay loans at month-end. The cash balance on October 1 is $6,700 and the company has an outstanding loan of $2.700. Forecasted cash receipts (other than for loans received) and forecasted cash payments (other than for loan or interest payments) follow Cash receipts Cash payments $22,700 25,850 $16,780 15,780 $28,760 15,380 Prepare a cash budget for October, November, and December. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Round your final answers to the nearest whole dollar.) FOYERT CORP. Cash Budget For October, November, and December October November December 6.700 s 22,700 29.400 25,050 6,700 s 16,700 23,400 15,700 6,700 20,700 27,400 15.300 Beginning cash balance Cash receipts Total cash available Cash payments interest on bank loan Preliminary cash balance Additional loan (loan repayment) Ending cash balance Loan balance Loan balance- Beginning of month Additional loan (loan repayment) Loan balance-End of month

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